Planners should add ‘family home’ advice, says consultant
Financial planners should prepare themselves for a "wave" of enquiries from pre-retirees looking to unlock wealth in their family homes, according to industry consultant JWW Consulting.
The group's founder, John Wiseman, said in a statement that many Australians will be forced to use their family homes to fund their retirements.
"Living longer in the twilight years might sound like an exciting prospect but running out of money in retirement is going to be a very real scenario and major concern for retirees," he said.
"In fact, many will find themselves dealing with the 'perfect storm' – longer lifespans, insufficient saving [in] investments and superannuation, low interest rates for up to two decades and an escalating cost of living, health and medical expenses."
Mr Wiseman expects more pre-retirees will look to financial planners for help in utilising "dormant wealth" as a result. Options will include equity release, taking out reverse mortgages and selling the family home.
"Financial planners will be on the frontline and need to prepare themselves now for a wave of enquiries and requests for assistance and solutions," he said.
"In preparing themselves, financial planners will need to look to the family home as source of untapped wealth to be included in the strategy and solutions they provide."
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