The equity release market will continue to grow, according to a poll of 200 advisers* conducted by Norwich Union Equity Release. Of those questioned, 78% believe they will be writing more business in the next six months, up from 75% a year ago.
- It will become normal part of retirement planning
The equity release market will continue to grow, according to a poll of 200 advisers* conducted by Norwich Union Equity Release. Of those questioned, 78% believe they will be writing more business in the next six months, up from 75% a year ago.
Advisers highlighted three factors that have led to a growing popularity in equity release.
- Property is now seen as an investment that can be used and 27% of those surveyed said house price rises have encouraged interest in equity release.
- Inadequate pension provision and the fact that many people want to maintain their lifestyle in retirement mean that individuals need to look at alternative sources of income. Some 36% of advisers questioned believe that lower returns on investments will see more consumers turning to the equity release market.
- Family and friends are more willing to discuss equity release as a way of funding retirement and there is a greater openness about the subject. Advisers said that there had been an increase in the numbers of newly-retired people requesting information about equity release.
However, the research also found that many advisers still need more information on the market and products available to be more proactive in recommending equity release, particularly reversion schemes. As a result of the findings, Norwich Union is launching an education programme in October aimed at advisers who do not have detailed knowledge of equity release. The campaign is being launched to improve understanding of the products and market and to help advisers develop their equity release business.
Brendan Kearns, group product development manager at Norwich Union Equity Release, said: “The research proves that equity release products are now a real solution for clients wanting to access a lump sum in later life and look set to become a normal part of retirement planning. We recognise that equity release can be a difficult market to access and that there is a need for more information about the products to be available. As a result of these findings we’ll be developing a range of tools and materials throughout the rest of the year to help advisers.”
Information about Norwich Union’s Home Reversion and Lifetime Mortgage schemes can be found at www.nuequityrelease.co.uk or call 0845 30 20111.
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Notes to editors
* Research was undertaken by pB. Qualitative interviews were conducted between 7 and 15 June 2005. Quantitative research conducted amongst 200 financial advisers between 9 and 15 June.
- Norwich Union is the market leading equity release provider with a market share of 37% (source Safe Home Income Plans Q2 2005). Full written terms and conditions are available on request.
- Norwich Union is one of the UK's biggest insurers. It is a leading provider of life, pensions and investment products and one of the largest Financial Adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including CIS and The Royal Bank of Scotland Group.
- Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.