SHIP: Political parties should focus on retirement planning

Safe Home Income Plans (SHIP), the equity release providers’ trade body, has urged each of the main UK political parties to go further in their pledges to help the ageing population. In response to the three main parties’ manifestos, SHIP has issued a three-point action plan for the future government to take hold of.

The first is education. SHIP believes children should be taught about finance at secondary school age. “The earlier children come to understand the importance of saving money, the more likely it is to become a habit; one that will prove invaluable in later life,” says Andrea Rozario, director general of SHIP.

The second point in the plan deals with communication. SHIP is urging the government to encourage people to consult qualified financial advisers when making money-related decisions. The earlier they seek advice about funding their retirement the more prepared they will be to fund the lifestyle they want when they do retire, it claims. “It is important that people are urged to seek advice before problems arise so that they are aware of all their options,” Ms Rozario says.

Thirdly, the organisation believes the government must work closely with the retirement industry to fully understand all the options available to the UK’s ageing population. This includes equity release, which can play a valuable role in funding social care and retirement, while allowing people to stay in their own homes.

“By working with the industry, whoever is in power after May 6, will have a better understanding of equity release and the possibilities it offers,” concludes Ms Rozario.