Most people reading this article will remember the film Father of the Bride when George Banks finds himself increasingly unable to handle his daughter’s upcoming wedding. With his white hair and slightly rumpled suits, he was an old man.
Except, he wasn’t. He was supposed to be in his mid-40s, but in 1991, that is how the film industry viewed the ‘middle-aged’. Retirees fared a little better with Victor Meldrew at a grumpy 60 years old, while Dorothy from the Golden Girls was 54 years old.
So, what does this have to do with the later life lending industry and equity release in particular? It is an interesting example of the power of stereotypes. The producers looked at society and decreed that this was what a 40-, 50- and 60-year-old looked like.
Was it fair and accurate? Probably not, but I do suspect that some people may have considered taking up gardening as that is just what ‘you do’ at that age.
And that is the power of stereotypes; they don’t have to be entirely fair or completely accurate, but if enough people believe them, they take on a life of their own.
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Stereotypes about age shape borrowing behaviour
Modern equity release products are worlds away from what we saw in the early 2000s, but stereotypes mean that in the minds of some consumers and advisers, they remain a ‘product of last resort’.
Now this is an issue that the ERC is working hard to educate people about, but it is not something that we can do alone.
Not only do we need the support of the wider industry, but we also need to encourage customers and advisers to tell their stories.
Spreading the good equity release news
In the UK, people are notoriously reluctant to discuss finances, but the idea that ‘people like us’ are considering equity release is incredibly powerful.
Reading about the positive impact that considering equity release has had on the life of someone they identify with or might see as part of their friendship circle is likely to encourage them to look into it. Understanding more about the advice process and the other options available because someone they work with has looked at it will encourage greater consideration of these products.
In H1 2024, there were only 11 upheld or partially upheld published complaints about equity release, so we know that there are some great stories.
Depending on the forum used, whether it is LinkedIn, marketing literature or with a journalist, the person will need to provide differing levels of information and may not even need to provide their name.
The team at the council is naturally delighted to hear from members if they have any particularly good stories to share.
Speaking to clients about the good they can do by explaining their choices can be a huge boost for not only your business, as it highlights the quality of advice, but the wider industry and, ultimately, people who decide to explore their options.
After all, think how much happier Victor might have been if he could forget about being ‘replaced by a box’ and enjoy his gardening in peace.
