Britons review faith in property to fund retirement

| November 4, 2008 | 0 Comments
Britons review faith in property to fund retirement

Investment firm, Alliance Trust, has revealed that the property market downturn has shaken homeowners’ confidence in funding part of their retirement by cashing in on the family home.

According to recent research by the company, only 33% of Britons list property investment among their top three methods of pension savings. The proportion compares with 43% a year ago.

Correspondingly, the number of respondents placing a company pension among their top three retirement savings vehicles has increased from 36% in 2007, to 40% today.

Meanwhile, the number of respondents placing personal pensions in the top three has increased to 31%, from 28% in 2007.

Alliance Trust spokesman, Steve Latto, is not surprised that faith in the UK property market has taken a battering and says it may decline further as recession bites.

Disappointment over plunging house prices is possibly being offset by optimism about the chances of a windfall or inheritance.

Twenty-one per cent of those surveyed said they were relying on a gain of this kind to fund retirement pleasures, compared with 18%, in 2007.

However, Mr Latto recommends careful financial planning and investment diversification as the way forward.

For those unable or unwilling to commit to a pension plan he recommends making a start with an Individual Savings Accounts, as cash can be transferred into a pension pot at some point in the future.

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