Equity release trade body SHIP (Safe Home Income Plans) has welcomed the launch of the WRIC, which has been set up to investigate how the UK can change its plans to help its aging population prepare for retirement.
The WRIC was launched by NAPF (National Association of Pension Funds) to ask how and why retirement planning seems to be failing. SHIP governs the equity release trade. Those undertaking CeMAP training will learn an overview of its role. To be able to advise on equity release schemes, which are deemed a specialist mortgage product by the FSA, advisors need to undertake CeRER training following the CeMAP.
Anrea Rozario, the Director General for SHIP, commented in a Financial Times article:
“The launch of the Workplace Retirement income Commission is good news for consumers as well as the financial services industry.
“For most working people, their home is their largest asset but the choice of using some of the equity to ease retirement finances is often ignored. We believe that as the commission looks to how the UK can radically change its approach to saving for retirement, equity release and a holistic approach to later life financial planning should form part of this.”
With many people finding their retirement income is insufficient following a long and hard working life, equity release provides a way to access a tax free cash lump sum using the value or ’equity’ stored in their home, whilst still allowing them to stay in the property but with many common misconceptions about the equity release products available, some people who may otherwise benefit greatly from an equity release scheme may miss out.