The Equity Release Council has called for coordinated action from the industry, government and regulators to help consumers plan ahead to enjoy better retirement living standards.

A new report, Later Life Lending: Great Expectations, has set out the potential role of the UK’s £5trn property wealth in addressing major societal challenges facing the UK’s ageing population.

These challenges include reducing retirement income shortfalls, funding social care costs, enabling the intergenerational transfer of wealth, bridging the gender pension gap and improving the energy efficiency of homes to meet net zero targets.

Authored by director of About Consulting Group, Jon Dunckley, the report has assessed the challenges facing the later life lending sector to build on the transformational changes seen in recent years.

Dunckley commented: “Despite seeing major progress on product innovation and advice standards during my 25 years in financial services, many consumers and their advisers still have their eyes closed to the potential of property wealth and later life lending products to improve their life experiences.

“There is huge scope for property wealth to offer real solutions to today’s financial challenges on an individual and societal level. For that to happen we need to develop a more joined-up approach, from government to regulators and advisers.”

The report was commissioned by the Equity Release Council and has outlined several recommendations in four key areas – spanning government policy, regulation, industry and consumer education – for later life lending products to support good outcomes as a central pillar of modern retirement planning.

Chair of the Equity Release Council, David Burrowes, added: “The UK’s ageing population needs safe and accessible later life lending products to make better later life living standards a reality.

“This report provides essential, and most importantly, objective clarity on the challenges to build on the flexibility and product innovation that has emerged over the last decade. The social benefits of accessing property wealth are beyond doubt, but as this report shows, there are still multiple barriers to overcome.

“The Council is dedicated to working with members, industry, policymakers and the regulator on coherent, consumer-focused solutions so the later life lending market can fulfil its potential. Greater coordination and collaboration across political, regulatory and industry stakeholders are essential.”

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