Speech by Emad Aladhal, director of retail banking at the Later Life Lending Summit.
IntroductionIn the years ahead, housing wealth will become an increasing part of how many people provide for their retirement. But it continues to be seen as an option of last resort, if thought about at all.Knowing I had this speech, as an experiment at a recent BBQ I had a conversation with my friends about retirement and savings – none of whom work in financial services. They talked about their employers’ pensions, SIPPs, ISAs, investments, and potential business ventures to supplement income in retirement. None brought up later life lending, or how they could use their home to help.I don’t believe my friends are unique in this.When consumers begin to consider their options for funding their retirement, they usually look to pensions: their state pension, workplace pensions, and personal pensions. The 3 pillars.But why should it stop there? Why should retirement planning focus only on these 3 pillars, and not on all assets available to the consumer?I am grateful for the opportunity to speak to you here today – you are the leaders from across the later life lending market, and through your actions the future of this market can be reshaped to meet the increasing needs of UK citizens. In this speech I want to deliver a simple message:There is an increasing generational and social need to provide greater funding in retirement.There is real opportunity to respond to this future demand by developing products people need, improving access to advice, and building trust.And the FCA will do its part to foster good outcomes for consumers and the appropriate growth of this market to meet future needs.But you need to step forward. Because if you don’t, I expect others will step in to define that future.A future where consumers think about their accumulated housing wealth as a fourth pillar for retirement funding, both by choice and necessity.