Analysis of approximately 5,000 statements of advice (SoAs) from regtech Fourth Line has found not one adviser mentioned home equity release or reverse mortgage strategies for consideration by clients.
The analysis of SOAs were written between 1 July, 2019, to 15 May, 2021, from 15 advice licensees and 1,980 authorised representatives.
Around 50% of the SOAs were for people agreed 55 or older with an average net wealth was $1.53 million allocated across $668,000 in superannuation, $332,000 in private savings, and $677,000 in property (net of secured loans).
Other findings included:
- For those aged 45 over, 73% of all SOAs reviewed contained advice on super and pensions;
- For those over 55, 14% of SOAs contained advice on private savings; and
- For those over 65, only 18% of SOAs included advice on Centrelink Age Pensions (juxtaposed to Retirement Income Review finding that 71% of seniors were receiving the Age Pension).
SOAs by age group
Source: Fourth Line