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A New Growing Acceptance Of Equity Release
The findings of SHIP came from their sixth annual member survey which showed that 60% of members predicted new entrants to the market and 67% predicted growth. This prompted Andrea Rozario, director general of SHIP to declare that “there are many opportunities ahead for growth and engagement, and the appetite to do so is evident amongst providers.” Supplementing Income in Retirement Releasing equity allows homeowners aged 55 years old or more to take a percentage out of the value of their home to supplement income in retirement. The amount released depends on a number of factors but it is tax-free and there are no monthly repayments required. There are different home reversion plans to choose from including lifetime mortgages and home reversions. This is complemented by a number of providers in the market. “A growing acceptance of equity release” One of the main reasons that there is such optimism for growth in the lifetime mortgage market is the continually improving relationship with the Government. Roughly 80% of the members asked in the survey felt that this relationship would continue to grow over the next twelve months. Andrea Rozario continued by saying: “Over the past twelve months, we have seen a growing acceptance of equity release as a retirement planning option amongst consumers, advisers and the Government. With longevity increasing and the Government making it clear that the state will not be able to provide all encompassing retirement funding, other options must be considered. “However, it is important that those who are entitled to state support fully understand what this will involve. SHIP is currently running a campaign to clarify the relationship between home reversion plans and state benefits, having found that many advisers and consumers find the current system in need of simplification. “We need to build on the good work already done to ensure that consumers in particular understand equity release so that they are able to weigh it up alongside other retirement planning tools.” With more and more people taking retirement planning seriously and looking for alternative ways to supplement their pension fund, equity release looks set to enjoy a growing relationship with homeowners. Equity release could affect your current or future entitlement to means-tested benefits Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away Article Directory: http://www.articledashboard.com |
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