News

Apr 25

Equity Release Advice must consider State Benefits says Bower Retirement

By Geoff Charles

Releasing tax free cash from a property can potentially be a way to help fund retirement aspirations, repay debts or supplement everyday income.

However, depending on the amount released, state benefits could be affected and confusion regarding the issue is rife.

Equity release trade body Safe Home Income Plans (SHIP), the organisation that offers a set of guarantees to homeowners who take out plans under their endorsement, has called for more clarity about how equity release can affect state benefits by asking financial advisers to relay their opinions, and those of their clients. The body is concerned that those seeking advice via the Department for Work and Pensions (DWP) will find it ‘inconsistent and confusing’.

Hopefully, clearer guidelines will be made available courtesy of the study says SHIP.

Geoff Charles, Managing Director of Equity Release Specialists Bower Retirement Services, says: ‘Homeowners taking out an equity release scheme need to be fully informed as to where they stand on the issue of benefits and how those benefits might be affected when they release their cash.’

Bower, winners of Best Financial Adviser at the 2009 Equity Release Awards, believes it is vital that clear information is made available to clients. Geoff says, ‘Part of our advice process includes a full benefits analysis of pension credits, savings credits and council tax benefits and we always strive to keep benefits intact where this is in the client’s best interests. I believe every Equity Release adviser throughout the country should include this service within their advice process.’

Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration. 

Bower Retirement Services is an FSA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information e-mail info@brsequity.co.uk or call 0800 4118668. Bower Retirement Services offers a no obligation initial consultation to homeowners considering Equity Release. Visit http://www.brsequity.co.uk for further information.