Royal London has bought a 30 per cent stake in later-life advisers Responsible Life and Responsible Lending, both part of Responsible Group.
The deal, which is subject to regulatory approval, will allow Royal London to support Responsible Group to continue delivering later life solutions for all their partners.
According to the mutual, this strengthens the existing partnership between the two companies which began in September 2020 with the launch of a jointly branded later life lending service.
Both companies believe the later life lending market has “significant growth potential” as it offers clients with equity in their homes more choice at retirement, whether this is used to supplement income, gift capital to family, or invest in improving their homes or achieving lifetime goals.
They have said this is an important option for those who have equity in their property but not enough pension savings to support their desired standard of living in retirement.
Referring clients to a specialist adviser can be a sensible choice for advisers who wish to make later life lending an important part of holistic financial planning, Royal London said.
Barry O’Dwyer, chief executive of Royal London, said later life lending will become a core part of financial planning.
He said: “Our relationship with Responsible Group will allow us to broaden their reach while ensuring existing clients remain supported.
“Financial advisers have a great opportunity to access support from Responsible Group’s specialist advisers, which will benefit both them and their clients.
“We are impressed by Responsible Group’s track record and excited by its potential for future growth. We share their passion for improving the lives of customers in retirement and look forward to supporting their ambitious plans.”
Steve Wilkie, executive chairman of Responsible Group, said: “The further commitment of a brand like Royal London to the later life lending market is an important endorsement of the growing role that equity release and retirement mortgages play in responsible financial planning.
“We look forward to working together, and with all our distribution partners, to help more customers enjoy later life lending solutions in the years ahead.”
amy.austin@ft.com
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