Research from pensions and retirement specialist LV= highlights how the Covid-19 pandemic has left millions of people considering alternative long-term care options to living in a care home.
The LV= Wealth and Wellbeing Monitor* - a quarterly survey of 4,000+ UK adults – reveals:
Nearly half** of UK homeowners (45%) would consider using a lifetime mortgage for at least one of a variety of reasons including:
Equity release has become more popular over the past 10 years as consumers increasingly recognise how it can be used for retirement planning. Figures from the Equity Release Council shows annual lending in 2020 was worth nearly £4bn.
Figures from the LV= Wealth and Wellbeing Monitor* show:
“People understand that their property and equity release can play an important part in securing the retirement they want. Many currently use equity release to top up their income, pay for home improvements or to provide financial support to family and friends but it will be interesting to see if the Covid pandemic leads to an increase in the use of equity release to pay for care.
“LV=’s research indicates that the pandemic has made many older people reluctant to move into a care home. Rather than moving into a care home, an increasing number may consider using equity release to pay for carers and the cost of modifying their home for medical reasons.”
People considering their care options should refer to the Society of Later Life Advisers (SOLLA).
LV= offers Lifetime Mortgage Lump Sum and Lifetime Mortgage Drawdown equity release plans. In 2020 LV= expanded its presence in the equity release market with the launch of a new platform supporting its products and the launch of a new drawdown product – Lifetime Mortgage Drawdown+. Using the LV= Equity Release Portal, advisers can produce key facts illustrations, submit and track lifetime mortgage applications online enabling customers to release money from their homes.
Specialist advice service MorganAsh provides LV= customers with discounted access to Care Navigator. Led by the knowledge of experienced nurses, Care Navigator assists people arranging later-life care for a parent, loved one or themselves, with the choice of a care home or staying in their own home.
MorganAsh Care Navigator begins the process by carrying out a detailed assessment of care needs, and providing a recommendation for a care solution. There are a range of options available via the service, such as liaising directly with medical professionals and local authorities.
* LV= surveyed 4,000+ nationally representative UK adults via an online omnibus conducted by Opinium in June 2020, September 2020, December 2020, March 2021 and June 2021
LV= is a leading retirement and protection specialist. 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.
LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited (LVFS) and trading styles of the LV= Group of Companies.Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth, BH1 2NF. Phone: 01202 292333.