Almost a quarter of advisers refer their clients on to another source for advice and answers, although just 15% said they’d refer them to the Department of Work and Pensions (DWP).
Of the advisers who tried to seek information, 30% said they found it from the DWP, HMRC and Direct.gov, 11% from the trade press and 11% cited computer programs and software.
The information gap is even more of a problem among borrowers, with 88% of equity release clients unclear on the interplay between state benefits and equity release and over half rely on their broker to explain the relationship.
The research also showed 50% of equity release customers are not claiming the benefits they are entitled to, 42% didn’t know equity release could affect their benefits and 12% thought they could lose their benefits after drawing equity out from their properties.
The research by SHIP, the trade body for equity release, is part of a campaign to clarify the relationship between equity release and state benefits. The results of this research were analysed by a Working Group led by Baroness Hollis on Wednesday 13 October 2010 with recommendations still to come.
Director General of SHIP, Andrea Rozario, said: “At this time of review I would urge the Government to take stock and listen to advisers, simplify the current system through the introduction of clear guidelines, and look for better ways of communicating the information they do provide,” she said.
“Financial advisers can help to ease the process of planning for retirement, but in order to do so they must feel as though they have the support of the Government and their needs are being recognised.”
