Some 93% of UK financial advisers believe property wealth should be incorporated into retirement income planning, research conducted by the lang cat on behalf of Nokkel and FNZ has revealed.

It also found that more than nine-in-ten advisers believe that retirement advice specifically should include property wealth.

Every adviser interviewed said they gather housing wealth information when building a holistic wealth picture, however it is used inconsistently for wealth gains.

Nearly half of all advisers refer their end-investor clients to an external resource for home equity release with 31% not considering home equity at all.

The data also showed that one third of advisers believe their wealth management firms could offer home equity solutions but have not, while 17% think there is no integrated solution available.

Roland Whyte, chief executive and founder of Nokkel, said: “House wealth needs to become more of a focus for advisers when they plan for clients. Especially in light of the now-live FCA Consumer Duty and the upcoming Retirement Income thematic review, which will only make house wealth more relevant to financial advice.

“But accessibility and data transparency are key to making this a worthwhile end-client experience. Modern technology that easily integrates with advisers’ platforms will need to be matched with reliable data. Then automated insights become a possibility.

“This is particularly important when considering financial solutions that have historically lacked transparency and advice, such as equity release.”

Mark Polson, founder of the lang cat, added: “Historically, the regulator has also had a blind spot for housing wealth, however as the recent retirement income review has shown, this is now changing.

“There is an obvious and increasing need for people to draw on housing wealth in retirement, so it is great news the fintech sector is developing solutions to meet this need.”

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