Nine in ten advisers say equity release is relevant to their client bank, according to a new research released today.
The research from Aviva, which interviewed 300 advisers, found that despite 88% of advisers recognising that equity release was important to their client bank, just 38% were able to provide advice around the subject.
Of these, 9% said they regularly provide guidance and 29% say they occasionally provide help on products in this arena.
A further 19% have a referral relationship where they refer the client to an expert within their own company or to a specialist intermediary firm.
And there is considerable demand for these services with 57% of consumers expecting a mortgage-free property when they retire compared with just 29% who believe they will have a private pension, 19% who expect to have cash investments and 17% who feel they will own stocks and shares investments.
And many consumers now expect a holistic approach which looks at all their assets, over half of over-45s want to discuss how to use their total wealth to cover the cost of retirement and 60% are keen to identify how to make their finances as tax efficient as possible.
There are still barriers to advisers entering the equity release market with 46% citing lack of relevant qualifications.
Some 20% were worried about the reputational risk posed by these products and 22% say they did not feel that they were currently good value.
Head of at retirement at Aviva Roger Marsden said: "This might be an important new revenue stream for advisers in the post-Retail Distribution Review market, with the demand only likely to increase in the future."
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