The equity release industry has made huge progress to improve its image, according to Will Hale, director of Key Partnerships.
During an interview with FTAdviser’s Emma Ann Hughes, Mr Hale talked about the steps made by the Equity Release Council, and by distributors and providers in the industry to address the “reputational issues” facing the sector.
This, he said, included giving customers confidence that they are buying a quality product that can address their needs.
With firms like Legal & General, Aviva and LV now participating in the market, Mr Hale argued that this has boosted customer confidence in equity release products, as well as the advice process.
When Mr Hale was asked how the pension freedoms have affected the equity release industry, he said it was still too early to tell.
“Obviously we have seen a trend towards the use of more drawdown products than annuities, that means people are going to burn through their pension pots earlier in retirement than has been the case previously.
“We all know that the house is a major asset for people as they enter retirement, and if you combine that with the fact that they will run out of money early, I think what it’s going to do in the medium to long term is certauinly boost the need for equity release.”
emma.hughes@ft.com
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