Lord Hanson once remarked: “Always be nice to bankers. Always be nice to pension fund managers. Always be nice to the media. In that order.”
The global financial crisis has left many people concerned about their pension provision as high profile ‘pension shortfall’ cases have made the national news. Billions have been wiped off the value of pension funds leaving many people unsure of how they will fund their retirement.
So, perhaps it is no surprise that a recent survey has found that the proportion of parents who would advise their children to invest in property to provide for their retirement is now greater than those who suggest contributing to a pension.
Property a good way to save for retirement
The research from insurance company LV= found that 54 per cent of over-50s would tell their children that property is a good way to save for their retirement. This compares to just 53 per cent who would recommend paying into a traditional pension scheme.
The research has also found that there are now 1.2 million Brits who are looking to the equity in their homes as a way of funding their retirement.
Property ‘best chance’ of a comfortable retirement
Recent figures from the Land Registry show that there has been a 6.7 per cent annual increase in UK house prices. When compared to the low interest rates many people are receiving on their savings – often 1 per cent or less – it is perhaps not surprising that more and more people believe property to be the best way of saving for their retirement.
Head of equity release at LV=, Vanessa Owen, says: “Many are still positive that the equity they have built up over the years in their home is their best chance of having a more comfortable retirement.”
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