It is unlikely that many of these borrowers' incomes are going to improve as they approach and go into retirement. For these borrowers, we have found that the suite of solutions included in firms’ waterfalls is typically not sufficiently extensive or ambitious.
The range of solutions does not take into account the scale of the financial and demographic challenges that exist in the firms’ LTMA portfolio. This is not just a case of requiring better use of existing waterfalls (as above), but consideration of whether the suite of solutions is sufficient.