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Lipsey calling for greater equity-release innovation

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.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. What utter rubbish spouted by Khalaf! Equity release never has been & never will be; “a last resort”.

    The home is an asset just like a pension fund or investment portfolio, to be drawn from to support lifestyle choice & need. A skilled adviser will appreciate that it is a question of determining & discussing with clients, how best to access their accrued wealth & that must always include a consideration of the home, usually as their asset of greatest value.

    I don’t believe that Hargreaves Lansdown hold regulatory permissions to advise on equity release (do tell me if I’m wrong) so Khalaf is unqualified to make such outdated & inaccurate remarks.

  2. ER is indeed a last resort – I work for a company who sell it and our literature states that it is a last resort and any other means of raising cash would be preferable. e.g borrowing form family/friends.

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