Speaking at the Retirement Plus roundtable event on the future of the equity release market, Marion Hatfield, consultant at Atos Consulting, said: “I see equity release as another income stream for people who have inadequate pension provisions and are becoming more reliant on their own self-provision. I believe equity release will become a mainstream product that will help to fund many peoples’ retirement.”
Hatfield explained that, despite government reform to even out discrepancies in pension provision from the state, employer schemes overall had become less lucrative and in the future would only provide a basic level of income. Cashing in on assets, such as ones’ home, was a social solution for elderly people who were living in poverty.
Chris Rumsey, commercial director at Retirement Plus, agreed that there was a social need for equity release and that underlying economic forces would allow equity release to grow.
However, he added: “Equity release will suit people with a wide range of circumstances, not just those in need. Retired people may wish to release equity to increase their quality of life, help their children onto the property ladder or for tax purposes. People want different things from equity release, but I believe it will become an important part of mainstream financial planning in the future.”
