Advisers should offer holistic retirement advice
Bernie Hickman, managing director of individual retirement solutions at L&G, reckoned consumers increasingly see their retirement assets as one pot, yet few adviser firms cover all aspects of the retirement market.
He said: “Historically, advisers have tended to specialise in either pension accumulation and retirement income solutions but relatively few consider the role that the home can play in retirement planning.
“We are starting to see a trend towards convergence of retirement funding streams with more consumers instinctively thinking about their home as their pension.
“This, together with the landscape changing introduction of pension freedoms mean it’s more important than ever for advisers to be able to offer genuinely ‘whole of customer need’ advice, including considering the potential of using the home to fund retirement.”
Over-60 homeowners own nearly £1.3 trillion in housing equity in the UK.
L&G entered the equity release market in February 2015, while more big name providers are expected to enter the market in the next 12 months.
Hickman added: “Legal & General has considerable capacity to provide future funding for retirement solutions, given the strong demand for lending into retirement that we are now seeing in the UK market.
“Advisers that recognise the opportunity to deliver holistic solutions to customers at- and in-retirement will benefit from the changing market dynamics that we are seeing, and will increase their business volumes as a result.”
He said: “It’s also encouraging to see that the FCA has recently announced a review of the retirement lending market with a focus on how the wealth built up in property can be made more accessible to the growing numbers of people
“We believe that government services like Pension Wise need to reflect their increasing demand for guidance and support right across the retirement assets spectrum, not just traditional pensions.
“Only then will consumers see the financial services industry and the government presenting a united and consistent front that will help consumers to think more holistically about their retirement needs and the range of ways in which they can be funded.
“Of course, Legal & General will play a full part in helping to ensure that, with the support of advice, more people are better informed about the range of choices they have when seeking the retirement funding solutions that are right for their circumstances.”