SHIP has high hopes for equity release market in 2011

Despite a challenging 2010, the most recent members’ survey from equity release trade body Safe Home Income Plans (SHIP) reveals a positive forecast for the coming year, with members predicting new entrants (60%) and market growth (67%).

In addition, 75% believe the market can withstand further economic pressures and remain at least at the same levels.

However, 86% believe SHIP needs to continue to work to increase awareness and understanding of equity release with the government and consumers in order to overcome a lack of understanding and confidence in the products.

Andrea Rozario, director general of SHIP, comments: “Over the past 12 months, we have seen a growing acceptance of equity release as a retirement planning option amongst consumers, advisers and the government.

“With longevity increasing and the government making it clear that the state will not be able to provide all-encompassing retirement funding, other options must be considered.”

She added: “SHIP is currently running a campaign to clarify the relationship between equity release and state benefits, having found that many advisers and consumers find the current system in need of simplification.

“We need to build on the good work already done to ensure that consumers in particular understand equity release so that they are able to weigh it up alongside other retirement planning tools.

“There are many opportunities ahead for growth and engagement, and the appetite to do so is evident amongst providers.”