Some consumers also misunderstand equity release. Nearly half of advisers (48%) had clients who think they will end up owing more than their home is worth, and a similar number (46%) say clients are often worried that equity release will leave them unable to pass their house on to their family.
More than half (55%) are worried about how equity release will impact the future ownership of their home, while one in three (32%) are concerned that it will lead to them taking on more debt.
Andrew Gilbert, Director of Proposition, Savings & Retirement at LV=, said:
“Equity release is increasingly being seen as a mainstream option in retirement – and rightly so. The Government last year backed a Select Committee recommendation that the new Money and Pensions Service sign-posted retirees to consider home finance options including equity release as part of a broader retirement planning strategy.
“I believe that it’s our job to equip advisers with the knowledge and products they need to provide their clients with the right choices to support their retirement.
“Our findings highlighted that only a quarter (25%) of advisers felt most informed about equity release – this is compared against 91% for pensions and 74% for annuities.
“The Equity Release Council also plays an important role, providing a wealth of online materials including the Adviser Guide to Equity Release. The resources are out there for advisers who want to make the most of this increasingly mainstream retirement planning option.”