Nigel Waterson, Chairman of the Equity Release Council comments on Aviva’s latest research into misplaced fears about equity release:
“The equity release market is experiencing record growth as increasing numbers of over-55s look to capitalise on their biggest asset – their home – to achieve financial security and stability in later life. However, there are some common misconceptions about equity release that do not ring true in today’s modern market: if these are not addressed, pensioners run the risk of missing out on a valuable product that can add a much-needed boost to their income.
“Modern equity release products have a number of safeguards to ensure over-55s can use equity release safely and with complete confidence. For example, members of The Council will always provide customers with the right to remain in their property for life, while the ‘no negative equity’ guarantee ensures they will never owe more than the value of their home. Customers can even ringfence a portion of their property to leave as inheritance.
“Pensioners now have even greater autonomy in how they manage their retirement savings following the changes announced in the Budget, so it’s never been more important to take out independent financial advice to fully understand the options available. Through greater education and improved consumer understanding, we can challenge these misplaced fears and ensure that equity release is recognised as a valuable part of retirement planning.”
