Saturday, Oct 04, 2008
One third of consumers relying on property to fund their retirement
Retirement Planner: Don't rely on your property to provide your pension
Recent fluctuations in the housing market mean people can no longer look with certainty at using their property to fund retirement. David Millar discusses the situation. A survey taken by Friends Provident before the credit crunch began showed that a third (33%) of consumers were depending on property or equity release to fund their retirement. At the time of the survey, the average property owner probably believed that their house would be worth more in a year's time, felt that property prices would continue to rise and would have been confident that there would be someone around prepared to offer the asking price if they wished to sell. The market today is a very different place, with house prices falling as sellers are obliged to cut their asking prices in order to find buyers.
5 Comments
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1. plato said...
I would say the majority of pension provisions in some form or other would have been based on property equity during the last few years. One third would be over a much longer period.
The latest idea was through equity release by down-sizing/moving abroad. The introduction of SIPPs adding to this.
The only investment that carried 100% trust for people in general was property. The 'idea' was becoming universal.
Oh Dear!!! We now have a situation that is critical. Ordinary State Pensions are at poverty levels. Company Pensions have been decimated as have Private Pensions. The future basically cannot be funded.
Add to this the future tax burden we are being presented with and radical changes will have to be introduced.
Everyone will (unless unfortunate) be a pensioner one day. This is becoming a huge social problem most certainly for the future and this HPC although necessary will have some devastating side effects.
Unfortunately we need good government to deal with this. When will this happen?
2. jack c said...
@plato - "Unfortunately we need good government to deal with this. When will this happen?" - probably when regulars on this site get together and form a new party that ultimately sweeps to power on a mandate of common sense, honesty, total transparency and a radical policy of fairness for all in society - I can sense Mark Wadsworth jockeying for position of Chancellor as I type.
3. malct said...
Jack c - have you read 'protocols' and / or 'silent weapons'?
we have no effin chance
they have it sorted, we are stuffed.
4. malct said...
unless -
5. Homebuyers121@googlemail. Com said...
If you are struggling to build up a decent pension and starting to worry about how you are going to support your retirement providing you have a property and are over 55, you could qualify for an equity release scheme in the form of a lifetime mortgage or a home reversion plan. You can get still more information about equity release which I browsed on internet can fetch you help.