The Dilnot Commission has, unsurprisingly, attracted much media attention and comments from Andrea Rosario of Safe Home Income Plans (SHIP) and Claire Barker from the Equity Release Solicitor’s Alliance (ERSA) back the industry’s consensus that the government needs to be doing something to highlight the benefits of Equity Release as a viable retirement funding option.
DILNOT: “It’s absolutely right” says SHIP’s Andrea Rosario.
In response to the Dilnot Commission, the equity release industry has come back via SHIP director general Andrea Rosario who agrees that the report “is absolutely right”.
“Financial service options such as equity release [therefore] have a strong role to play in helping people to contribute to their care costs. The establishment of a Working Group, as the Report suggests, to look into the development of financial products that will help people to meet the cost of care is to be welcomed.”
ERSA: 19% Considering Equity Release
A report from the Equity Release Solicitor’s Alliance (ERSA) has revealed that 19% of the UK population will definitely consider using equity release to fund their retirement. And for 32%, government backing would increase the likelihood of them taking out a plan.
ERSA chairman Claire Barker also welcomed the Dilnot Commission’s recommendations commenting that the current system is “confusing”.
The experts at Bower are in agreement that the government should be doing more to demonstrate the benefits – and the safety – of regulated equity release plans. Managing Director Geoff Charles says that there are several plans that lend themselves perfectly to care funding, including the relatively new ‘landlord loan’, amongst others.
“Thankfully the equity release industry is going through a period of development and we are seeing the introduction of lots of new and innovative products, including some geared towards care funding” he says.
Some equity release plans can work in tandem with a long term care annuity and can be used to keep a cap on care fees, just like Dilnot recommends. In a nutshell, the plans are aimed at protecting a property so that it need not be sold to the local authority to fund care, and at the same time, funding good quality care.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
Bower Retirement Services is an FSA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information e-mail email@example.com or call 0800 4118668. Bower Retirement Services offers a no obligation initial consultation to homeowners considering Equity Release. Find out more by visiting http://www.brsequity.co.uk.