Almost two thirds (62 per cent) of UK homeowners, aged 55 and over, is price comparison websites to compare financial products, research from the Equity Release Council and the Equity Release Supermarket has revealed.
The council’s bi-annual Home Advantage study, which surveyed 5,000 adults, found growing confusion among homeowners about the financial options available to them in later life.
As a result, comparison websites currently rank among the four most popular sources of information relied on by older homeowners.
When asked what sources of information they favour when researching different financial products, over 55 homeowners prioritised using consumer websites, identified by 36 per cent of respondents.
This was ahead of speaking to their bank or building society, identified by 35 per cent, speaking to a financial adviser, 30 per cent, and using a PCW, 27 per cent.
ERC CEO, Jim Boyd, said: ”Over-55 homeowners see consumer websites as their first port of call when researching financial information and are more comfortable than some other age groups when using price comparison websites.
“That said, they are still likely to rely on the human touch citing their bank or building society and their financial adviser as popular sources of information.
“With increasing numbers of homeowners admitting that they are confused about their later life options, it is vitally important that they not only undertake as much research as possible from reputable websites but also speak to experts."
He said the real value of financial advice is helping customers make sense of all their options.
Boyd added, alongside qualified advice, it is “essential” the industry gets ahead of future demand by harnessing technology to ensure consumers can find the information they need to make informed choices.
“Without the right prompts in place, people may never get to the stage of sitting down with an adviser, which is why later life options need the same online visibility associated with other everyday financial products to help more people see their potential,” he added.
Confusion
The research also showed the level of confusion among older UK adults as a third of over-55 homeowners are confused about their options in later life.
Broken down by gender, it found female homeowners in the age bracket felt more confused about what mortgages are available to them than their male counterparts, with 37 per cent of women recording confusion compared to 28 per cent of men.
They also felt less confident about their retirement finances than male homeowners of the same age, 50 per cent compared with 60 per cent.
Additionally, women are less likely to use price comparison website when researching financial products.
tom.dunstan@ft.com
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