More2life releases new manifesto

Jake Carter

February 14, 2020

More2life has announced the launch of a new manifesto.

The manifesto outlines how the company will support advisers with their later life lending cases through technology, product breadth and adviser focussed support.

In an AKG report funded by more2life, it shows that 67% of advisers surveyed believe being able to offer a wider range of services to clients is the key advantage of advising on equity release.

Meanwhile, the data shows that 42% said an additional revenue steam from providing equity release advice is a primary benefit.

Additionally, 46% of advisers outlined that equity release allows them to help customers that they would not ordinarily have been able to support.

Looking at future engagement within the equity release sector over the next 12 months, 47% said they already offered an equity release advice solution in-house and just under one-fifth already deliver advice solutions via a referral service.

More than half (55%) of advisers who currently offer equity release predict that this area of their business to grow over the next three years.

Dave Harris, chief executive officer at more2life, said: “As the needs of retirees evolve and become even more complex, it is paramount that advisers are ready and able to cater for this growing demographic.

“However, we appreciate that the later life lending sector may seem like a step into the unknown for many advisers.

“It is for this reason that we’ve decided to launch our new manifesto which outlines how we plan to enhance our processes to help more advisers produce better retirement outcomes for their clients.”

Matt Ward, communications director at AKG, added: “The purpose of the paper is to provide practical and educational output which encourages further discussion and debate about the evolving role of equity release in the UK retirement and later life markets.

“The research reveals positive signs and shows us that advisers see the ability to offer a wider range of services to clients, being able to help clients with issues they could not help with previously and the provision of an additional revenue stream for the adviser business as key primary benefits of offering equity release.

“A steady growth picture is predicted for equity release business, but the twin hurdles of historical perception of equity release and compliance concerns remain a deterrent to engagement for some advisers.

“All parties need to continue how best to consider and address potential issues around client vulnerability and duress.”

Will Hale, chief executive at Key, said: “This paper provides an interesting and informative view into the equity release market in 2020, specifically from the viewpoint of the wider adviser community outside of those that specialise in the sector.

“Education is key moving forward both for consumers and advisers so that they understand all the benefits and options which are available to support over-55s when they are planning their retirement.

“Data highlighted in the report includes the fact that nearly two out of three advisers (63%) say clients most value the ability to make capital repayments while 58% say clients are interested in being able to make interest payments.

“The later life lending sector is constantly evolving and the value placed on these relatively recent innovations is encouraging as it shows that even non-specialists are recognising the flexibility of the modern equity release products and therefore how they can be used to address a wide range of customer needs and wants.

“Misconceptions have long been an issue in this market but insights from reports such as the AKG offering are somewhat reassuring and show that while we still have a long way to go in helping the market achieve its full potential, there are clear signs that equity realise is being recognised by financial services professionals as having an important role to play in later life advice.

“Indeed, it would seem that in most cases we are actually pushing on an open door when it comes to encouraging a wider range of advisers to discuss equity release and later life lending with their clients and either to refer to a trusted partner or to advise on the products themselves.”

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