Over 90% of advisers say a lack of information from the government prevents them fully understanding the relationship between state benefits and equity release, Safe Home Income Plans (SHIP) says.
Around a quarter of advisers say they refer their clients to another source for information on how equity release can affect state benefits. A huge 88% of equity release clients do not fully understand how the two vehicles interact.
Although roughly half of equity release clients rely fully on advisers for information on the effects of equity release on state benefits but 37% of advisers feel they have no clear way of keeping up with these changes.
The other half of equity release clients are not drawing state benefits they are entitled to.
"These findings highlight how important it is that advisers have access to clear and consistent information, so that they are fully equipped to help their clients to navigate the benefits system, when choosing to release the equity in their home," says Andrea Rozario, director general of SHIP.
"Following the announcement of a single universal credit many people may be unsure of what they are actually entitled to which is where financial advice can play an invaluable role.
"If even advisers are struggling to easily navigate the convoluted benefits system, how are they to reassure their clients?"
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