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The later life lender

02.19

Over half of children worry about their parents finances - housing equity seen as a possible solution

New research from equity release lender, more2life, has revealed over half (60%) of adult children (30 – 55 years old) are worried about their parents’ finances. 
 
Sandwich Generation Concerns:

Almost a quarter (22%) are worried that the state of their parents’ finances would stop them from fully enjoying the retirement they deserve and 20% of children are concerned about their parents running out of money altogether during retirement. Meeting later life costs such as care are also a concern with 18% citing their parents’ struggle to fund care as a major concern, while 19% believe that their parents would run into debt in the next five years if one or other required care.
 
Support for Using Housing Equity:

When asked what financial steps they might support if their parents were struggling financially, 32% were happy with downsizing, 21% would be keen to see their parents release equity from their property and 19% would suggest selling the family home. Over a quarter (27%) would be keen to provide financial support or a loan if their parents needed it while 12% suggested they might take out a personal loan or later life mortgage.
 
Dave Harris, Chief Executive Officer at more2life, comments: 

“Speaking to advisers one of the comments that you hear is that clients don’t want to touch their housing equity as they want to leave an inheritance to their children. While this is something that most children are likely to appreciate, this research clearly highlights that not only do they worry about their parents finances but they would prefer them to take proactive steps to improve their financial situation if they are struggling.
 
 
“Whilst the equity release industry has experienced historic levels of lending in recent years, it’s crucial for lenders to continue working with advisers to raise awareness among families of the benefits of unlocking property wealth.  Inheritance is a family concern but so is the fact that the older generation enjoys their retirement and can pay for costs such as care.
 
“Market innovation means that there are more products available than ever to meet individual client retirement needs but we need to work hard to ensure that people realise just how much the market has evolved. Advisers are key to educating people and their families so they - at the very least - start to discuss how housing equity can help solve some of the financial challenges they may face in the future.”  
 
 
-ends-
 
Notes for Editors:
For more information, to arrange an interview, contact:
Hannah Polson, Taneesha Pawar
Rostrum
+44 (0)207 440 8672
E-mail: [email protected]
 
Lee Blackwell
Director of Public Relations and Public Affairs
Key Group
07384511140
E-mail: [email protected]
 
Rachel Mann 
Key Group
01772 508322
E-mail: [email protected]
 
 
Methodology:
1,010 UK adults aged between 30-55 were surveyed in November/December 2018 to ascertain their views of their parents finances and the role they play in discussing the financial circumstances of their family.
 
About more2life
more2life are equity release specialists.  They offer plans to help homeowners unlock tax-free cash from their home to boost their finances and improve their quality of life.
 
Due to their extensive knowledge of customer needs, more2life has designed and produced equity release plans with the customer in mind, plans that will enhance customer's lives, releasing cash safely and efficiently. To ensure these values are upheld, the safeguards and guarantees offered by the Equity Release Council Code of Practice are core to a more2life plan.

Taking an equity release plan is one of the major decisions a customer can make and more2life believe that they should have the best possible choice. So, more2life plans are only offered through FCA authorised firms who have suitably qualified advisers.

This website is intended for intermediaries only and has not been approved for customer use. more2life Limited. Registered in England No 5390268. Registered Office: Baines House, 4 Midgery Court, Fulwood, Preston PR2 9ZH. more2life is authorised and regulated by the Financial Conduct Authority.