Brokers also believe that increased involvement by relatives in the advice process will result in fewer complaints in the future.
However, a significant majority were also worried about their financial security should they make a substantial gift to their family.
According to research conducted by More 2 Life, 80% of equity release advisers felt there was a need for family members, such as children and grandchildren, to be involved in the advice process.
Similar numbers (75%) of brokers found family members engaged in the process when they were part of it with 82% saying they believed relatives supported the client’s decisions.
This may have wider benefits with 71% of advisers believing involving family could mean fewer complaints about equity release.
Capable of making decisions
However, half of the 152 advisers surveyed said some clients were reluctant to involve their loved ones in the process in case it worries them.
For clients who decided not to involve their families, 84% felt there was no reason to include them as they were capable of making their own day-to-day financial decisions, while pride about financial struggles (53%) was another deterrent.
Almost half added that clients felt they had already provided their family with enough financial help.
Meanwhile, 59% of advisers said family members who were involved in the equity release advice process expressed an interest in how it might benefit them.
Encouraging results
More 2 Life corporate marketing director Stuart Wilson said it was encouraging to see when families were involved they were largely positive about the experience.
“Our research highlights the important role which families can play in supporting older relatives during their equity release journey,” he said.
“Not only are those families who are involved in their relatives’ decisions more supportive of their choices but ultimately less likely to raise a complaint when the products are eventually redeemed.
“This is hugely significant for the industry as we work very hard to maintain high standards of product innovation and advice so it is extremely frustrating when someone complains as they didn’t realise their parents had used equity release to access the value of their home,” he added.
Financial concerns
However, research from Key found three-quarters of over-55s were worried that by making financial gifts to children and grandchildren they may run into financial trouble themselves later on.
It found 78% of over-55s were concerned about their own financial security following a gift while 76% were worried about the possible tax implications.
However, this did not stop 76% saying they already have or plan to financially help out their children. One in five added they would be supporting their grandchildren too.
The survey found that average gifts for children were nearly £17,000 while lucky grandchildren could look forward to average £11,300 in pre-inheritance.
Half already helped children
Almost half (46%) the 950 homeowners with children or grandchildren aged 55 and over who were surveyed said they had already helped children while another 30% planned to do so.
Around 4% had also made financial gifts to grandchildren and another 18% expected to.
Homeowners in the North East led the way with 94% having already given or planning to give to children while Londoners (34%) were the most likely to give financial help to grandchildren.
In contrast, East Anglia and Wales residents were least likely to help children (66%) and grandchildren (13%) respectively.
Worries of over-extending
Key CEO Will Hale said there was clearly a desire among this group to support younger generations and a recognition of some of the financial challenges they were facing.
“Despite recent reports pointing to a growing intergenerational divide our experience is that families continue to offer financial support when it is needed across the generations,” he said.
“The over-55s have done well out of property wealth growth and many may be benefiting from generous company pension schemes.
“However, while their current financial wellbeing is enabling them to help out family there may be worries of over-extending themselves and under-estimating the costs involved in the latter stages of life.
“Therefore, it is vital that the over-55s seek specialist advice when choosing to access the wealth in their property,” he added.
