The Financial Conduct Authority’s Targeted Support initiative misses out on the potential to include later life lending for over-55 homeowners, said Key Partnerships.
The referral arm of Key Group believes Targeted Support presents a great opportunity to close the UK’s advice gap by bridging the space between generic guidance and individualised advice, but fails to include later life lending options despite many older customers potentially benefitting from it.
Key Partnerships is urging firms which offer Targeted Support to signpost customers to specialist advisers who can assess whether modern lifetime mortgages can form part of their financial planning.
Homeowners aged 55-plus own more than £3.7 trillion of mortgage-free property wealth, with the firm stating that it should form part of holistic later life financial planning and advice.
Damon O’Connell, director at Key Partnerships, said: “In order to ensure good outcomes for customers, the home has to be included in retirement planning conversations, but the scope of Targeted Support does not currently include later life lending options.
“However, firms that offer Targeted Support propositions should signpost customers to specialist advisers who can assess whether products such as modern lifetime mortgages can be used as part of retirement planning conversations.
“Later life lending products are increasingly relevant to all over-55s homeowners and can support needs such as more efficient management of existing debt, a boost to retirement income, home improvements to potentially make a property more suitable for later life living and eventually to perhaps help finance care provision in the home.”
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