It has urged them to consider equity release as a potential solution, and says all parties must come up with detailed plans about how they intend to plug the retirement gap.
Jon King, managing director of Hodge Lifetime, backed the call to action from SHIP. He said: “Politicians should make their position far more clear on how equity release fits into people’s retirement planning.
“SHIP has done some tremendous cross-party work, but if one party could just be bolder in this area it could really gain an advantage.”
Stuart Wilson, managing partner of Gloucester-based Equity Advice, agreed that all the parties need to be more specific. “They have all now come to the same conclusion that the State cannot afford to fund the growing retired population. What’s unbelievable is that they have not come out with any real policies on exactly how this problem can be overcome.
“It is not just consumers who need educating about how equity release can help older homeowners, it is politicians. Those who understand this sector are saying it’s a solution that must be on the political agenda. It’s not perfect or all encompassing but it is currently being ignored.”
However Mark King, managing director of Crown Equity Release, pointed out that while equity release offers a long-term solution, it is currently being hampered by the continued lack of funding: “Unfortunately the market has contracted, and while there is still demand for the products, the funds are not available.”
SHIP figures last week showed total market advances fell 8% in the first quarter of 2010, and the value of the equity release market dropped 13% in the last year to £213.4m.
