The Intermediary – July 2025 - Flipbook - Page 19
I N P RO F I L E
retirement, but it is important to raise their
awareness of how their property wealth will come
into play later. A ‘mid-life MOT’, such as in Sweden,
could also take account of assets across the board.
This means a much broader consideration of
financial health, such as factoring in how renting
can affect a person’s financial trajectory.
Younger generations are already showing
a different attitude to debt, according to the
Council’s ‘Home Advantage’ research, and intend
to use property wealth to fund their retirement
lifestyles. Advisers must be ready with a full
toolkit to keep up.
“People are living longer lives, making
the transfer of equity to support their
children’s financial objectives through
traditional inheritance harder,” Boyd
says. “So actually, having a vibrant later
life market is becoming more important.
“On a macro-level, if you don’t
encourage people in later life to release
funds to top up their retirement needs
– such as funding their needs for care and
health, easing the strain on the NHS – and give
them more ways to engage in efficient markets
or transfer wealth to younger generations, then
public spending will become squeezed.”
Nevertheless, it is currently “a total lottery”
from one adviser to the next. A wealth manager
might not factor in property assets, while a
mortgage adviser might not be aware of the full
range of later life products available. Part of the
problem is a “fractured market” that enforces a
different regulatory structure across different
areas. This is also where trade bodies and industry
representatives must come in.
The Council is at the heart of this question. By
continually refreshing and updating its standards,
it aims to create a market that is “completely
committed to great customer outcomes [and]
peace of mind for consumers.”
Boyd highlights the work of Michelle Highman,
chair of the Standards Committee, to strip out
ambiguities and duplications, and refreshing the
Council’s standards overall.
Its Later Life Lending Summit, taking place
in November, aims to further this education,
including practical case studies and ‘newbie
streams’ for those looking to understand more.
In order to address the “lottery” element of
choosing an adviser, Boyd points to an increasing
focus on qualifications, which shows that the
Government understands the need for better
awareness and education.
“We support various ad hoc training initiatives,
such as webinars, but we also work closely with
Government and the regulators,” Boyd explains.
“It’s about driving a change in expectation and
making sure there’s coherence and clarity as this
market evolves.”
In the meantime, he says: “We are updating our
website, and I’d love for it to increasingly become
a destination point for those all those advisers
trying to make sense of later life lending products.
The expectation is for consumers to also be able
to understand where to go to get advice, from
mainstream mortgages to care.”
Building on strong foundations
JIM BOYD
While borrowing in retirement is becoming more
widely accepted, there are still misconceptions
around equity release as a product of last
resort.
The effort to build out education, create
more resources, and prime
the market for growth must also
normalise housing wealth as part of
the cultural understanding of financial
stability.
This not only requires the ‘next gen’
products signalled as expected by the FCA
to fit evolving consumer needs, as well as
space for further innovation, but a fundamental
behavioural and mindset change.
Boyd suggests that the UK draw on examples
from around the world – markets with a more
welcoming approach to deploying housing equity,
such as Australia, which has Government backed
equity release schemes.
Meanwhile, broadening the terms of the
Pensions Dashboard, Money and Pensions
Service (MAPS) and Department for Work and
Pensions (DWP) could help crack open public
consciousness.
Furthermore, Boyd suggests that there should
be a “commissioner for retirement,” a Government
role unaffiliated with any political party, a “core
navigator” able to see where issues overlap – such
as the integral importance of the care industry to
this conversation – and change the narrative.
For now, the Council will continue building on
its own work, as well as with other trade bodies,
facilitating public discussion and using its summit
and other events to share vital information.
Boyd concludes: “Public discussion and close
collaboration are both a huge focus – looking at
commonalities and sharing best practice.
“The market is still facing incredibly tough
headwinds, due to consumer uncertainty and high
gilt yields. But we are seeing growth, and this
market demonstrates significant resilience and
extraordinary opportunities to innovate.
“We will see greater stability returning. This is
going to be a vibrant, coherent later life lending
market. It’s hugely exciting, provided the basis for
growth is underpinned by great standards.” ●
July 2025 | The Intermediary
19
