General Insurance Article - Comments on the Equity Release Councils Q4 2020 market stats


Comments from Legal and General and Just group on the Equity Release Councils Q4 2020 market statistics

 Claire Singleton, CEO of Legal & General Home Finance: “Today’s figures show that property wealth is playing an increasingly important role in people’s retirement planning and, while there was an expected dip in applications following the first national lockdown in March, we can now see that this led to pent-up demand, and a significant uptick in cases, later in the year. Low rates are clearly playing a part, but we’ve seen property wealth become a more mainstream consideration in people’s retirement planning in recent years and, as a result, there has been growth in the later life lending market, giving customers greater choice and flexibility, along with competitive rates.

 “Covid-19 has had a huge impact on people’s finances and retirement plans, leaving many people vulnerable due to financial stress. As an industry we must ensure we are spotting these cases and providing alternative solutions where necessary. At Legal & General we are extremely proud of our work in this area and, across the industry, fantastic progress is being made in raising standards, which has helped bring equity release into the mainstream. Those considering releasing wealth from their home should always have an open conversation with an adviser to ensure they consider their income and assets holistically before proceeding. Equity release will not be right for everyone but, as the figures highlight, it continues to be a valuable solution for older homeowners who want to enjoy a comfortable retirement.”

  

 Stephen Lowe, group communications director at Just Group: “Today’s data on the equity release market reflects the rollercoaster ride we all experienced last year, but also highlights that demand for equity release plans is underpinned by real consumer needs,” he said. ? 

 “The year began with a record first quarter before lockdown bit. This abrupt change in circumstances forced many people to reassess their financial plans, particularly around ‘big ticket’ items such as holidays and home improvements. ‘Business as usual’ simply wouldn’t work given the constraints of lockdown but huge efforts across the industry to keep the market open and operational for customers were rewarded with a sharp rebound in activity in Q3 and a strong end to the year.

 “The fact that the year ended with total lending across the market just 1% lower than 2019 is remarkable in the circumstances. Most importantly, the industry has found ways to continue serving customers and prompted some genuinely innovative thinking at a time when it seemed like the world might be grinding to a halt.”

 He added that housing equity is set to become an increasingly common source of funds for the over 55s across a range of income groups. “The range and flexibility of products available means equity release can be used for estate planning or help with care costs, and because of the high home ownership rates among pensioners with lower incomes it will continue to offer a valuable way for them to bolster their retirement income.”
  

 
  

Back to Index


Similar News to this Story

Chancellor must prioritise sustainability in Budget
The Institute and Faculty of Actuaries (IFoA), Lord Bird and a number of other organisations have joined forces to urge the government to carefully co
Stars call for government insurance scheme for live events
Some of the UK’s most legendary performers are among those calling on the UK Government to commit to underwrite cancellation costs of events such as m
Global insurers unite to tackle climate risk
The Geneva Association’s new report, Climate Risk Assessment for the Insurance Industry, finds that, for both P&C and life re/insurers, climate change

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.