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.”