The FCA’s director of life insurance and financial advice Linda Woodall said releasing housing equity has a place in retirement planning and admitted that the regulator should support additional training.
More 2 Life has welcomed the Financial Conduct Authority’s calls for more training for equity release advisers.
This week the FCA’s director of life insurance and financial advice Linda Woodall said releasing housing equity has a place in retirement planning and admitted that the regulator should support additional training.
Stuart Wilson, channel marketing director More 2 Life, said: “We have been calling for more advisers to enter the later life lending market and it is pleasing that the FCA is finally starting to take heed with this.
“Training is crucial for this market.
“Over the years it has gone from being a somewhat niche market to a specialist sector therefore meaning we require advisers who are able to specialise in equity release solutions.”
The FCA is currently working on their Aging Population Project which examines the provision of financial projects for older people, particularly over the age of 80.
Wilson has expectations for the results of the project, which are being released in summer next year.
He added: “We hope the FCA’s Ageing Population project will look to address the issue of retirement planning and look to integrate equity release into retirement planning, whereby all retirement options should be fully considered.
“Many consumers are entering retirement saddled with debt and stress. Retirees are often not aware that the wealth in their property is accessible without the need to downsize and sell their family home.
“However, advisers need to be speaking with their clients and making them aware of this.”
Earlier this week Woodall said: “I think that the release of housing equity has a place in retirement planning.
“In terms of why there’s a shortage of advisers, I’m not sure that I really know the answer that. I think it may be a reluctance from the population.
“I think we should support additional training where that’s called for. And clearly we just need to say that advice is key in that conversation. And in fact with equity release it’s pretty much mandatory.”
