Generating leads

So, where can leads come from?

Currently, there are more than 20.5 million people aged 55 and over in the UK. While the end of the default retirement age means that people are working for longer, they are also enjoying longer retirements. Unfortunately however people’s savings habits have not matched this change to retirement longevity meaning that whilst the state pension will provide a basic income, it is generally agreed that most people will see some shortfall to their income expectations.

One option for many older customers to make up this shortfall is to make use of the considerable value tied up in their properties. While traditionally, people have seen the family home as an inheritance or a nest egg, there is increased acceptance that it may need to help finance part of a person’s later life. A point to consider……..

This suggests that in the future we may see more people looking to release equity and other later life lending options to meet their needs in retirement which raises an interesting question – how will they access this market? The answer is simple – this is where you come in!

This graphic from Key Partnerships tells you where the majority of leads came from in 2021 and 2022. You can see that Mortgage Brokers are the key so read on to see how:

Think about the discussions you can have with your clients when you meet them for the first time. Ask yourself these questions?

? How long do you spend talking about retirement plans with your clients

? Do you delve into what retirement might mean to them and what they want to do with the time

? Do you discuss the future plans your customers might have for their house – what are they really buying it for apart from a place to live right now

Downsizing is seen as the most sensible option for people who wish to release some of their equity in their home, however...

While 29% of over 45s say they are planning to downsize, 48% are not as their home is the right size for them (32%), they are already in their forever hom (25%) and they don’t want to leave the community they are in (23%).

...so this may not be possible for everyone.

Others find that due to their modest property value, the amount the release is eaten up in moving costs (£9,600), legal fees and stamp duty or they are unable to find a suitable property which meets their needs.