Due to the introduction of SHIP (Safe Ноте Income Plans) and the Financial Services Authority (FSA)regulation concerning the equity release sector, such loans have turned into more comprehensible and much safer products, primarily due to the absence of negative equity guarantees.

However, many people stay suspicious about equity release loans and don’ t want to include them into their retirement planning.

In spite of this fact, the use of equity release loans has been recently endorsed by an all party parliamentary group. Moreover, these loans were said to be a central factor in retirement strategy for people, in helping to eliminate the gap between their income from pensions and investments and their real financial necessities.

The key issue discussed by the all party parliamentary group was the insurance and financial planning needs of retired individuals and those who will get retired in the nearest future. Equity release loans were acknowledged to be an essential part of retirement planning. However, it was decided that the sector needed the following:

  • initiatives to alleviate the public mistrust in the equity release market,
  • maintaining a high standard of advice for supporting increasing demand,
  • further steps from the government in their support for the industry as the number one retirement funding solution.

Andrea Rozario of SHIP was enthusiastic about the news and told that it was a great delight to see that housing equity was finally occupying a well-deserved place in the current retirement funding canon. However, he admitted that it would still require much time and efforts to develop new loan products and solidify public confidence in accepting equity release loans as a significant part of retirement planning.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.