SHIP welcomes government’s equity release openness

Equity release trade body Safe Home Income Plans (SHIP) has commended remarks made by Lord Warner, member of the Dilnot Commission, about the baby boomer generation using property wealth to pay for care in old age.

These comments were made at an event held in February by Reform to examine the issues of paying for long-term care.

Director general of SHIP, Andrea Rozario, said: “It was extremely encouraging to hear that the Commission on Funding and Support will consider the role housing equity can play in paying for retirement care. As Lord Warner highlighted, universal state provision is a ‘fantasy’ and therefore all other funding options need to be explored.

“In a climate of rising prices and increasing unemployment it seems that the finances of both young and old are under stress. However, the baby boomer generation has had the ability to build up assets which they might be able to use at this time. There is a huge amount of untapped value tied up in their homes, and this could be used to share the financial load.”

Ms Rozario added: “Lord Warner called for greater creativity and innovation in the products offered to people who might want to release the equity from their home to pay for care.

“Whilst this is important, I would also stress the vital role that government can play in providing transparent and accurate information to people as they approach retirement to help them understand the products that are already available, so that they are as informed as they can be when making financial decisions.”