The government’s Single Financial Guidance Body, due to launch in January 2019, will signpost customers to equity release, it has been announced.
The body will combine the Money Advice Service, the Pensions Advisory Service and Pension Wise and will be chaired by former Financial Services Authority chief executive Hector Sants.
Its role is to ensure members of the public have access to guidance that allows them to be informed and educated about how to manage their money well and avoid falling into problem debt.
“It will signpost consumers to information on all money matters, including mortgages and equity release, shared ownership and shared equity, and on re-investing the proceeds of sales,” the government said.
Will Hale, chief executive of equity release adviser Key, said with people living longer but relying on shrinking pension pots to meet a variety of needs it is only sensible that they consider whether they want to use housing equity to improve their standard of living.
“While this move is welcome and clearly underlines the role that the government sees housing equity playing in retirement, we need to ensure that the information people are signposted to gives a clear representation of the modern equity release market,” he said.
Hale claimed customers and their families still have misconceptions around how equity release products work.