News
Retirement Funding
Research shows that 3.2m, 7% of UK adults are planning to use property to fund their retirement.
10% of the 35-44 age group, 8% of 45-54 age group and 6% of those 25-34yrs plans to use property profits in their retirement plans.
The report shows concern that these people are leaving themselves open to fluctuations in the UK market. The report states that people need to understand the last ten years high house prices may not continue for the next decade. It is important that retirement funds are made up of several different assets taking into account age, commitments and years to retirement.
Women warned about retirement planning
Britons need to become more aware about planning for their pension, with levels of confusion about the issue particularly high among women, according to new research.
The survey from HSBC bank found that 60 per cent of women are not contributing to a pension scheme, with 31 per cent of these saying that this is because they are not working or only work part time.
Meanwhile, 44 per cent thought that people had to be working in order to make pension contributions, while just 36 per cent were aware that people could pay money into a pension for someone else.
Head of pensions and retirement income at HSBC Ian Martin said that although people were now more aware of the need to save, verified by an increase in pension contributions, too many people still did not seem to be doing anything about it.
He commented: "Despite efforts by both the government and the industry to generate more awareness around retirement planning, our research clearly shows that that there is still a lack of clarity over how to go about it - especially among women and particularly stay-at-home mums."
Research from Yorkshire Bank found that just one in eight people were saving enough for their retirement and 27 per cent of parents hope their children will be able to help them out financially in their old age.
Landlord Mortgages comments ‘Retirement mortgages are becoming more widespread, that is to say homeowners are having to work longer into what would normally be considered retirement age in order to pay off their mortgage. This trend is likely to get worse as young First Time Buyers decide to rent instead of buy.’
LettingAgent.com comments ‘It is highly unlikely that a young person can afford the rent and contribute to pension at the same time. Starting pension contributions whilst trying a rent a property is not realistic, the young have barely enough income to live off. I am sure people will have to rent and work longer in the hope that medical advances will allow them to have a comfortable, prolonged old age!’
© See Terms and Conditions
