The vast majority of financial advisers (93%) believe that property wealth should now be a key consideration when giving financial planning advice, research from Nokkel has revealed.

According to the house wealth and fintech platform, more than nine in 10 advisers believe retirement advice specifically, should include property wealth.

Nokkel’s research, conducted in partnership with wealth management platform FNZ, and on behalf of the pair by the lang cat, comes amid a growing trend of insufficient savings among both current and soon-to-be retirees. A 2021 report by the Pensions Policy Institute found that five million people were heading for retirement without adequate pension income, a trend that has since been exacerbated by the UK’s cost of living crisis and high interest rates imposed by the Bank of England.

The research revealed that almost every adviser interviewed gathers housing wealth information as part of their fact-finding process of advice. However, while housing wealth information is viewed by advisers as essential to building a holistic wealth picture, Nokkel believes it is used inconsistently, if at all, for wealth gains.

As a result, the firm has suggested the advice industry needs to change its outlook and make house wealth considerations a key part of retirement planning for clients.

“House wealth needs to become more of a focus for advisers when they plan for clients,” said founder and CEO of Nokkel, Roland Whyte. “Especially in light of the now-live FCA Consumer Duty and the upcoming Retirement Income thematic review, which will only make house wealth more relevant to financial advice.

“But accessibility and data transparency are key to making this a worthwhile end-client experience. Modern technology – that easily integrates with advisers’ platforms – will need to be matched with reliable data. Then automated insights become a possibility. This is particularly important when considering financial solutions that have historically lacked transparency and advice, such as equity release.”

CEO, UKMEA of FNZ, Alastair Conway, said: “The research highlights the importance of property when it comes to opening up wealth advice to a wider audience. For the service needs of financial institutions, insight on house wealth is essential to have a holistic view of clients’ financial situations to offer better solutions for their needs.”

Founder of the lang cat, Mark Polson, added: “It makes no sense to not build housing wealth into a client’s financial plan. The industry is still too siloed in this regard, though it is better than it used to be. Historically, the regulator has also had a blind spot for housing wealth, however as the recent retirement income review has shown, this is now changing.

“There is an obvious and increasing need for people to draw on housing wealth in retirement, so it is great news the fintech sector is developing solutions to meet this need.”

Share Story: