Royal London, the UK’s largest life, pensions and investment mutual, has acquired a 30% stake in later life lending and product specialists Responsible Life and Responsible Lending (Responsible Group). The deal is subject to regulatory approval.
Both companies believe the later life lending market has significant growth potential as it offers customers with equity in their homes additional choices at retirement, be it to supplement their income, gift capital to family, or invest in improving their homes or achieving lifetime goals. This is a particularly important option for those who have equity in their property but not enough pension savings to support their desired standard of living in retirement. Referring clients to a specialist adviser can be a sensible choice for advisers who wish to make later life lending an important part of holistic financial planning.
Acquiring a stake in Responsible Group will enable Royal London to participate in an important, growing market and support Responsible Group to continue delivering innovative later life solutions for all their partners. This strengthens the existing partnership between the two companies which commenced in September 2020 with the launch of a jointly branded later life lending service.
Barry O’Dwyer, Group CEO of Royal London said, “Since equity release became a regulated market, accessible through specialist advice, customers can now access good quality products. We believe that later life lending will become a core part of financial planning. Our relationship with Responsible Group will allow us to broaden their reach while ensuring existing clients remain supported. Financial advisers have a great opportunity to access support from Responsible Group’s specialist advisers, which will benefit both them and their clients.
“We are impressed by Responsible Group’s track record and excited by its potential for future growth. We share their passion for improving the lives of customers in retirement and look forward to supporting their ambitious plans.”