It’s been reported that the majority of brokers view financial service industry advisers as under qualified to provide sound retirement advice to older people. They say this is a specialist area that requires further qualifications and advanced skill sets and such services should be left to the experts in this field.
With the scrapping of required annuity for pension schemes in April 2015, this freedom to spend as much as they would like may leave retirees in need of other forms of income. Many are expected to turn to their estate if their funds are to run out. Therefore guidance needs to be given in order to financially plan for the future.
Experts are saying many brokers have the capability to handle complex mortgage cases, but aren’t qualified in equity release. Many brokers currently turn to specialist partners to provide these services, but the growing demand is highlighting the increased need for advisers to be able to offer advice in both mortgage and equity release. This will allow advisers to provide comprehensive knowledge into all financial aspects of retirement planning.
The issue of lifetime mortgages being closely linked to retirement planning has also been raised as a key reason for brokers to seek further training.
The Institute of Financial Services (IFS) do currently provide a Certificate in Regulated Equity Release. This qualification covers both mortgage and equity release through completion of three Certificate in Mortgage Advice and Practice (CeMAP) modules and a further equity release module. However, some are arguing against such qualifications, saying specialisms could become diluted as a result.
Nigel Waterson, Chairman of the Equity Release Council, states the combining of expertise must be managed carefully in order to maintain quality service provision.
