Lipsey calling for greater equity-release innovation

16 June 2011 | By Tom Selby

Lord David Lipsey has written to a range of financial institutions, high-street banks, potential product providers and industry stakeholders calling for increased engagement with the equity-release market.

In a letter published in this week’s Money Marketing, the Labour peer says a combination of lower savings ratios, rising longevity and a greater emphasis on individuals’ contributions to retirement funding pose “serious hurdles” for both future retirement saving and social care funding.

With the Dilnot Commission expected to recommend that people make a “significant” contribution to care funding, Lipsey urges providers to deliver inc-reased competition and innova-tion in the equity-release market.

He says: “It is important that innovation and competition continue to develop in the equ-ity-release market.”

Hargreaves Lansdown pensions analyst Laith Khalaf says: “Equity release should be viewed as a last resort because it represents failure of a retirement plan. But it is important the market is there and is well functioning.”

If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing