Almost two thirds of (62%) UK homeowners aged 55 and over would look to price comparison websites (PCWs) to compare different financial products, according to new research from the Equity Release Council (the Council) and Equity Release Supermarket on the role of technology in supporting the customer journey.
The Council’s bi-annual Home Advantage study of money matters among 5,000 UK adults shows growing confusion among homeowners about the financial options available to them in later life.
A third of homeowners over 55 (33%) say they are confused about their options in later life, a slight improvement from 2021 when 34% said the same. Yet, new data reveals female homeowners over 55 feel more confused about what mortgages are available to them than their male counterparts (37% vs 28%). Moreover, female homeowners over the age of 55 feel less confident about their retirement finances than male homeowners of the same age (50% vs 66%), yet women are also less likely to use PCW’s when researching financial products (25% vs 28%).
However, homeowners aged between 55-64 specifically are more likely to find PCWs easy to use (65% vs. 62%) and are also more trusting of PCWs than across all other age groups (52% vs. 51%).
PCWs currently rank among the four most popular sources of information relied on by older homeowners. When asked what sources of information they favour when researching different financial products, over 55 homeowners prioritised using consumer websites (36%), speaking to their bank or building society (35%), speaking to a financial adviser (30%) or using a PCW (27%).
Amidst these challenging economic times and against the backdrop of an evolving later life lending market offering an increasing variety of products, consumers have a growing desire to take control and have greater awareness of financial products available to them with 61% of all UK homeowners – equivalent to 18.7 million people**- interested in releasing money from their property in later life to satisfy financial needs.
In addition, with more ‘ultra-long mortgages’ running beyond the average state pension age, the research reveals the prominent role property plays in supporting a comfortable retirement evidenced by the large number of homeowners over 55 believing a mortgage in later life is becoming more ‘common’ and ‘acceptable’ (44% respectively). Jim Boyd, CEO of the Equity Release Council, commented:
“While it might be cliched to talk about silver surfers, over-55 homeowners see consumer websites as their first port of call when researching financial information and are more comfortable than some other age groups when using price comparison websites. That said, they are still likely to rely on the human touch citing their bank or building society and their financial adviser as popular sources of information.
With increasing numbers of homeowners admitting that they are confused about their later life options, it is vitally important that they not only undertake as much research as possible from reputable websites but also speak to experts. The real value of expert financial advice is helping customers to make sense of all their options, consider the implications and answer some of the many questions that conflicting information sources can raise.
Alongside qualified advice, it is essential we get ahead of future demand by harnessing technology to ensure consumers can find the information they need to make informed choices. Without the right prompts in place, people may never get to the stage of sitting down with an adviser, which is why later life options need the same online visibility associated with other everyday financial products to help more people see their potential.”
Mark Gregory, Founder and CEO of Equity Release Supermarket, commented:
“Until now, researching later life options online proved difficult given the lack of information and choice across the market, leaving consumers feeling confused by their options.
However, with tools and live calculators consumers have a vast amount of real-time and accurate information at their fingertips to personalise their requirements before engaging with a financial adviser.
The study also revealed that those aged 55 and above are much more tech savvy than most realise, relying on online financial research and comparison tools. Hence, there is an upsurge in the demand and reliance on platforms such as smartER™.”
