Better Education Required For Equity Release Loans
There has been a significant increase in the number of retired individuals taking out an equity release loan, or lifetime mortgage, over the course of the past few years, although many people are still wary or unsure about this type of loan due to the bad name the products got for themselves in the past.
One equity release loan specialist, Bridgewater Equity Release, recently conducted a survey amongst Financial Advisers, who believe that it is the responsibility of the government as well as loan companies, to educate pensioners about the benefits and pitfalls of taking out an equity release loan.
Almost a third of advisers who took part in the survey thought that the government had the main responsibility for consumer education into equity release loans and reversion schemes, with a further 28 per cent placing the responsibility on the loan companies themselves.
With a recent lack of pension planning from individuals and poor investment and savings returns, many people are retiring without the amount of monthly income they need to maintain their lifestyles and an equity release loan is now being seen as a major retirement planning tool for many individuals in this situation.
More than half of the Financial Advisers who were interviewed, believed that the majority of the increase and education in the equity release loan market would come from the adviser sector itself, as these are usually the people who are in the initial face to face meeting with individuals who need advice on retirement planning.
Equity release loans are an important part of retirement planning these days, but they are still not suitable for everybody. It is therefore vital that anyone considering such a product seeks independent financial advice on the matter first, in order to ensure that they are doing the right thing.
