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Catch up with the latest press releases from LV=

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Housing equity a key consideration in retirement planning

Press release: 30/04/2013

Research carried out by retirement specialist LV= shows 88% of advisers believe the equity locked up in a property should be a key consideration when planning for retirement.

The majority of advisers (95%) consider equity release to be a significant future growth area for their business, and 78% of advisers expect equity release to become a mainstream financial product in the next few years. The main reason cited as the driver behind continued growth of the equity release market was clients’ needing to supplement their retirement income (60%). One in six (18%) believe that the rise in clients who need to pay off their mortgage and other debts will increase demand for equity release in the coming years.

The findings show that their clients’ outdated view of the industry, and their concerns about leaving an inheritance for their children are two of the biggest barriers advisers face when discussing equity release with clients. However, a third (30%) of advisers admit that it is their own lack of understanding about the equity release market which has stopped them from writing equity release business.

Steve Lewis, LV= Head of Retirement Distribution, said: “For many people, their property is their greatest asset so it is encouraging that advisers believe that the capital tied up in someone’s home should form part of initial retirement planning discussions.

“In recent months we have seen several high profile discussions, in the House of Lords for instance, highlight the pivotal role housing equity can play in helping to face the challenges of supporting our ageing population. However, it is clear from adviser feedback that there is still much to be done to combat the industry misconceptions that exist amongst advisers and clients.

“At LV= we are committed to supporting advisers wishing to promote the benefits of equity release to their clients. To this end, throughout May, we will be holding a series of face-to-face workshops focused on marketing and business development and the pitfalls to avoid when marketing equity release services.”

To sign up for a free place financial advisers should contact Georgina Oxton, LV= Equity Release Training Manager on equityrelease.sales@lv.com.

Notes to editor

*LV= carried out research among 50 advisers between 5 and 14 March 2013, at LV=’s adviser development sessions held across the UK for those new to the equity release market.

About LV=

LV= employs 5700 people and serves over five million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trade unions.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.

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