The government may need to look at the current age pension rule exempting the family home from the pension assets test if it is to encourage people to unlock the equity of their homes to provide retirement income.Actuaries Institute said the age pension treatment of the family home was the most significant demand-side constraint to greater use of home equity release in retirement.The Institute included its comments in its second round submission to the Financial System Inquiry. In its interim report the FSI asked what impediments there were to the development of products to help retirees access the equity in their homes.Actuaries Institute said: "There are no regulatory impediments constraining the development of home equity release products."However, there is a supply-side issue, with a lack of funding from lenders and investors."There are also demand side issues, arising from the exemption of the family home from the age pension assets test, which is unlike the treatment of other assets."