LV= has revealed that equity release is set to become a huge growth area for IFAs, with 35% of IFAs now saying equity release is a core part of their business.
LV= conducted new research at its recent equity release road shows that reveals IFAs believe equity release is set to become a big growth area for their future business, helping to deal with the needs of the UK's ageing population.
Research amongst IFAs that attended the road shows, which took place in May this year, showed that nearly all (98%) of them believe that there will be a surge in consumers using equity release over the next few years. 35% of the IFAs that attended said that equity release is already a core part of their business.
When looking into the reasons behind the future growth of the market, IFAs cited a shortfall in pension provision as the top reason for a future boost in people releasing the equity from their home, with funding to make home improvements and being able to help family onto the property ladder the next biggest motivators.
When looking into long term care planning, 88% of IFAs indicated that they believed, in the right circumstances, equity release could be the best option for people needing to fund long-term care in the home.
Vanessa Owen, LV='s Head of Equity Release said: "Advisers can clearly see the importance property will play in people financing their future in and around retirement, and a large number of IFAs now class equity release as core to their business. Releasing the money locked in a home can, under the right circumstances, be a lifeline for cash poor, asset rich people in or at retirement. With people living longer and healthier lives many will want a cash injection to help pay for a standard of living they have grown used to in their working lives as well as paying for home improvements, dream holidays or medical care. People's homes are often their greatest asset, so it makes sense for them to be able to access that capital when they need it."
Andrea Rozario, Director General of equity release trade body SHIP, added: "It isn't surprising that IFA's believe in the future growth of equity release when you consider the longevity issues we face and the problems this brings. Clearly the shortfall in pensions, along with an increasing need to pay for care in later life is becoming more important for the consumer and turning to their biggest asset, often their property is a logical step. The use of this asset can help alleviate problems for customers as long as they are fully aware of all the options open to them and this is where advisers play a critical role."
The LV= equity release road shows focused on professional connections and lead generation. The events covered issues around state benefits and equity release. In total 256 IFAs who attended the road shows took part in the research.
LV= is committed to the equity release market and, for IFAs interested in attending, will be running its next annual series of equity release road shows in spring 2011.
LV= offers a range of insurance (http://www.lv.com/ ) products including home insurance (http://www.lv.com/insurance/home_insurance/ ), car insurance (http://www.lv.com/insurance/car_Insurance/ ), life insurance, pet insurance (http://www.lv.com/insurance/pet_insurance/ ) and 50 plus life cover (http://www.lv.com/lifeinsurance/50plus ).
LV= employs around 4,000 people, serves over 3.8m customers and members, and manages around £9.5bn on their behalf. We are also the UK's largest friendly society and a leading mutual financial services provider.