Concerns over the affects equity release could have on inheritance are hitting 42 per cent of independent financial advisers' (IFAs) clients, research by Retirement Plus has revealed.
The study also found that a quarter of clients are concerned about the impact that falling house prices could have on the value of their investments
, the decline of which is expected to continue.
Commenting, Duncan Young, CEO of Retirement Plus said: "On one hand, consumers are being pulled by strong market drivers such as smaller pension
pots and higher living costs, making equity release an attractive option. Whilst on the other hand, inheritance concerns and the current instability in the housing market is putting them off."
The research also found that 13 per cent of IFA customers do not fully understand equity release
products, meaning they could be missing out on a viable funding option.
Mr Young added: "There appears to be still much to be done by providers to educate the IFAs and their customers about the various products available and how they might fit with other retirement planning tools."
Equity release allows the over 50s to release value from their homes without having to move house, and there are two main types. The first, and most common, is a lifetime mortgage
, whereby the homeowner takes out a loan against the value of their home, which is repaid when the property is sold after the owner passes away or goes into long-term care.
The other type, a home reversion scheme
, involves the homeowner selling part of their home, and the company which buys it then gets a percentage of the property's value when it is sold.
Industry experts predict that the current economic climate will see a rise in popularity of equity release schemes
, as more and more people look for alternative ways of topping up their pension
Get equity release quotes and advice
today or speak to a retirement planning
expert about the best options for you.
© Fair Investment