Equity release 'will become integral part of retirement'

Equity release is set to become an "integral part of post-retirement financial planning", according to a personal finance expert.

However, a number of challenges need to be overcome in order for the equity release sector to grow, stated Roger Marvin in an article for ftadviser.com.

"Funding for equity release products … is yet to become a priority for major institutions, and until more funding becomes available, realising the full potential of the equity release industry will be hampered," Mr Marvin continued.

He believes that one positive move would be for some initiatives to be introduced in order to increase public trust and awareness of the market.

Too many people think that equity release is in some way a high-risk option perhaps involving loss of ownership, whereas the reality is "very different", Mr Marvin added.

Andrea Rozario, director general of Safe Home Equity Plans, recently suggested that equity release could be a useful means of raising funds for many consumers.

Ashall Glover Financial Services are equity release specialists