Later life lending customers are now twice as likely to involve their families in the equity release process post-pandemic (44%) compared to pre-pandemic (19%), new research from more2life has indicated.

A report by the equity release lender has identified that the pandemic, as well as the cost of living crisis, has impacted how open families are about their finances, with the number of customers more than doubling between 2019 and 2023 when it comes to discussing equity release.

The research, which polled over 330 independent advisers, suggested that more later life lending clients are discussing their financial decisions with their families. more2life said that family involvement is particularly important as 84% of advisers agreed that involving families in the equity release advice process allows them to air any concerns which can then be addressed.

In 2021, the same more2life study found that most advisers (83%) said the biggest barrier to clients involving their families was because, as adults, they did not want to include family members in day-to-day financial decisions. This figure has dropped to 74% in 2023, as fewer borrowers viewed this as a loss of independence and more saw it as a normal part of financial planning.

The latest report also found that clients had other reasons for not discussing their finances with their families. Half of the advisers polled (50%) said that their clients did not want to worry loved ones by involving them in financial decisions. As a result, advisers were sometimes required to reassure clients and to encourage family involvement, especially if the client was identified as vulnerable.

While some clients had family support, others did not involve their families because they were not close enough to actually share any details. In another 31% of cases, more2life found that advisers also reported that clients were too proud to admit to their families that they were in financial need.

“The rise of the ‘pre-inheritance’ and the impact of the pandemic followed closely by the cost-of-living crisis has encourage families to have more open financial discussions,” said managing director at more2life, Ben Waugh.

“This has translated into twice as many older borrowers involving family members in later life lending discussions – a natural evolution as the proceeds are often used directly or indirectly to support loved ones.

“That said, some borrowers still worry that by involving family in the advice process they will raise concerns, or they may find that their independence is impacted. However, the converse is actually true with 85% of advisers suggesting that family members who do know are generally pleased to see them taking steps to improve the quality of their retirement and delighted when they find that they might also benefit.

“Whether a client is vulnerable or not, family involvement is vital – especially as the choices around products, features and interest rates can impact the estate over the long-term. Robust discussion and a greater understanding of the reasons behind the eventual decision can help to not only avoid complaints but ensure that families do not receive a shock at a later date.”

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