Industry calls for housing wealth to become part of mainstream retirement planning
Housing wealth should sit alongside pensions in retirement planning, industry leaders have said, as research suggests almost half of homeowners approaching retirement lack sufficient income.
Housing wealth should become a core part of retirement planning alongside pensions, according to industry leaders speaking at the Equity Release Council’s annual Later Life Lending Summit.
The sixth annual event, held at Church House Westminster in a new Leaders’ Symposium format, brought together policymakers, regulators, lenders, advisers, consumer groups, pension specialists and international delegates to discuss how housing wealth can be responsibly integrated into long-term financial planning while maintaining strong consumer protections.
Discussions were informed by findings from the Retirement Compass research programme, developed by Fairer Finance and commissioned by the Equity Release Council, which found that almost half of homeowner households at or approaching retirement do not have enough income to meet the Pensions UK moderate retirement living standard. Delegates also heard from Emad Aladhal, director of retail banking at the Financial Conduct Authority, as the regulator continues its Later Life Mortgages Market Study.
A recurring theme throughout the event was the importance of advice, consumer protections and professional standards in supporting the future growth of the later life lending market. Speakers also highlighted the need to improve women’s retirement resilience, pointing to the impact of career breaks, caring responsibilities, divorce, longer life expectancy and lower pension wealth on financial security in later life.
Jim Boyd, chief executive officer at the Equity Release Council, said: “According to the Pensions Commission, women approaching retirement have around half the median pension wealth of men. This is not a marginal issue – it affects half of our population.
“If policymakers are serious about improving retirement outcomes, they must recognise the role that housing wealth can play alongside pensions in supporting financial resilience. Fairer Finance’s research shows that property wealth could make a meaningful difference to many women’s financial security and quality of life in retirement.”
Reflecting on the wider discussion, Boyd added: “What was most encouraging was the level of consensus around consumer outcomes rather than individual products. Whether the discussion was about regulation, advice, funding, technology or housing wealth, the message was consistent: people benefit most when they are supported to consider their complete financial circumstances.
“Housing wealth has an important role to play in helping people achieve greater financial security in later life, but that can only happen if consumers have access to the right information, guidance, protections and advice. Supporting good consumer outcomes must remain at the centre of everything we do.”
The Council said insights from the symposium would inform its ongoing work with policymakers, regulators and industry partners as it seeks to support a standards-led later life lending market and encourage the responsible consideration of housing wealth within retirement planning.
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