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Waterson: ‘Crisis product’ mentality for equity release must stop

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Waterson: ‘Equity release should be part of intelligent forward planning for a stress-free old age’

Former Conservative pensions spokesman Nigel Waterson says it is time advisers stopped viewing equity release as a “crisis product’ and instead as something to always be considered as part of the financial planning process. 

In March, an influential House of Lords select committee published a report on public service and demographic change which urged policymakers to boost the equity release market.

This came after Treasury deputy chief economic adviser James Richardson told the committee the current market is failing.

Speaking at the Money Marketing Retirement Planning Summit in Cork last week, Waterson, who is now chairman of the Equity Release Council, said equity release products are still viewed by many savers and advisers as a “product of last resort”.

He said: “A lot of people still have negative perceptions about equity release. While a third of people say they would consider using their home to fund their retirement, only 6 per cent say they would consider an equity release product.

“All too often equity release is seen as a measure of last resort, a crisis product. It should not be, it should be part of intelligent forward planning for a stress-free old age.”

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Case study: administration — managing group life schemes

Our client leads the global market in high-tech electronics manufacturing and digital media. The trustees of the company’s final salary pension scheme insure death-in-service lump sum and dependants’ pension death benefits for active employees, as well as dependants’ pension benefits for deferred members (those who have left service).

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There is one comment at the moment, we would love to hear your opinion too.

  1. Matt Worthington 27th June 2013 at 4:06 pm

    I personally think that equity release will be a huge market in the future. I’m 24 and amongst my circle of friends I am the only one contributing to a pension at present (let’s see what auto-enrolment can do…).

    My generation seems very sceptical of any investment products, especially pensions, and far prefer to put any spare income towards purchasing their first property or paying off an existing mortgage.

    Give us 40 years and we’ll be a generation of asset-rich, cash-poor retirees, or in other words perfect candidates for equity release!

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