The Committee concluded that as society ages and demands more spending on the elderly, our society must avoid unfairly shunting the costs on to future generations. So it is important to ensure that those who are benefitting from longer lives pick up at least part of the tab
It is reasonable to expect those who have benefited from the property boom to support their own longer lives. The Committee suggests that one way to address the current imbalance would be for more older people to consider unlocking housing wealth. Equity release could enable more people to use their assets to help pay for the cost of their social care, to adapt their homes, and to support their incomes. The Committee considers that it is right for those who have benefited from windfall gains to contribute to the costs of their longer lives through equity release, rather than for the full costs to be pushed to future generations.
Because there is an urgent need for greater consumer confidence in the equity release industry, the report proposes that the Government should work with the financial services industry to encourage the growth of a safe and easy-to-understand equity release market.
As women’s and men’s experiences of older age are still, on average, different, it will be important to take into account the divergence in the situation of women and men in older age.