09 March 2010 / by Rachael Stiles
Equity release can provider a ‘key solution’ to the retirement funding crisis facing Britain, an All Party Parliamentary Group has determined.
The group showed support for using housing equity as a method of funding retirement when it convened last week to discuss using it to meet the financial deficit of the UK’s aging population, reports SHIP (Safe Home Income Plans), the equity release trade body.
Echoing many of the things which SHIP itself has been calling for, the group identified several key issues for equity release to realise its potential, such as the urgent need for increasing public trust in equity release and ensuring that a high standard of advice and support is made available to meet the growing demand.
Furthermore, there is a need for the Government to go further in its support of equity release as a key funding solution for retirement, the group agreed.
Commenting on the meeting, Andrea Rozario, director general of SHIP, said “It is gratifying to see housing equity taking its place in the mainstream retirement funding canon. Last night’s All Party Parliamentary Group produced some excellent debate, recognizing the financial challenges that Britain’s older generations face.”
The meeting of this group marked the ‘first vital step’ towards the Government putting equity release closer to the forefront, she said.
“SHIP remains committed to changing the way that the equity release industry has historically been perceived. Equity release products represent a real and immediate solution to financial problems facing older people every day. Our work has led to recognition from both major political parties. We will continue to build on this success to provide a product and a solution that is both safe and very necessary.”
The group’s meeting comes before the Government’s White Paper on the future of social care is expected later this month.
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