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Is Housing The Next Pensions Misery Story?

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this bbc article tells of the importance of getting your kids into the right school.

i wonder whether this is for the kids benefit or is it parents seeing into the future. kids borrow from their parents now but it could be parents borrowing from their kids in 30 years time if those houses dont turn out to be the pension pot hoped for.

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bbc link

this bbc article tells of the importance of getting your kids into the right school.

i wonder whether this is for the kids benefit or is it parents seeing into the future. kids borrow from their parents now but it could be parents borrowing from their kids in 30 years time if those houses dont turn out to be the pension pot hoped for.

Kids one day funding parents? The trend seems to be going all the other way. It's claimed that one in four FTB house deposits now involve a £10,000 plus parental gift/loan of one sort or another. With student loans, other debts and the crippling price of houses and flats I doubt many parents will ever get to the stage where they can expect any cash can be coming back from their offspring.

By the the time your kids are truly self-sufficient, its time to start thinking of your contribution to your parents' nursing home fees...

And unless your house is well over £500,000 and mortgage free, it won't provide much of a pension pot. A 100,000 grand gained by downsizing will only provide a hundred quid or so a week annuity

Don't want to depress anybody..

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And unless your house is well over £500,000 and mortgage free, it won't provide much of a pension pot. A 100,000 grand gained by downsizing will only provide a hundred quid or so a week annuity

Spot on. But look at this from the perspective of the average person.

Option A. Pretend that your house really is your pension, and everything will work out fine in the end. Then, in thirty years time, realise you'll actually have to keep working well into your 70's, and then face spending your final years living on a pittance where you can't afford holidays or a car, and indeed struggle to have both heating and food.

Option B. Do the sums, and realise that to retire at 65 on a two-thirds pension will mean seriously curtailing your spending below that of your friends for the rest of your adult life. That your family can actually only afford one small second-hand car, and can only afford a modest holiday every second year.

Truth is both options are pretty bleak.

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Spot on. But look at this from the perspective of the average person.

Option A. Pretend that your house really is your pension, and everything will work out fine in the end. Then, in thirty years time, realise you'll actually have to keep working well into your 70's, and then face spending your final years living on a pittance where you can't afford holidays or a car, and indeed struggle to have both heating and food.

Option B. Do the sums, and realise that to retire at 65 on a two-thirds pension will mean seriously curtailing your spending below that of your friends for the rest of your adult life. That your family can actually only afford one small second-hand car, and can only afford a modest holiday every second year.

Truth is both options are pretty bleak.

Your suggested options seem almost utopian.

I can see it all now.. Retired forcibly at 65 with inadequate pension. Next 15 years on £5 an hour - less tax, limping and wheezing I push huge lines of trollies in a biting wind accross Lidl car park. The only respite, an annual weeks holiday camping in the rain at Redcar, or driving the J reg Micra, looking out at the grey skies, wonder if that rumbling is more thunder, or the main bearing in the gearbox.

Live the dream.

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  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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