HomeOwners Alliance logo

Sign up to our newsletter for the latest property news, tips & money saving offers

  • Homebuyer Protection Insurance - Get 10% off in March
  • Use code HOA0320 at checkout to apply discount

Record number of British people rely on property to fund retirement

A record 13% of British people plan to rent or sell property to fund their retirement, up from 11% last year, according to research from investment management firm Baring Asset Management.

Five million homeowners would rather put their faith in property values than annuity, according to the research published this week.

Annuity rates, which determine how much a pension pays, are at an all-time low. The low rates have been caused by quantitative easing, low interest rates caused by the Government’s Funding for Lending Scheme and longer life expectancy.

Ros Altmann, formerly a pensions adviser under Tony Blair, told the Daily Mail that pensioners would have to wait until the age of 90 before their annuity became ‘good value’.

She also said that pensioners who buy annuities at 65 will not get their money back unless they live until the age of 82. ‘Far from being a low-risk purchase, buying an annuity could be the biggest gamble you ever take in your life,’ she added.

The report comes at the same time as comments from The Royal Institution of Chartered Surveyors, which announced today that the UK’s recovering property industry is being boosted by Help to Buy and funding for lending.

Read more

Stage 2 of Help to Buy

Rics says Help to Buy has fuelled housing boom

Step-by-step guide to selling your home


Leave a comment




* required

No Comments

No comments yet.

 
×

Win a pair of weekend tickets to the Ideal Home Show

Sign up to our fortnightly newsletter for a chance to win. Get the latest news, advice and exclusive offers to your inbox. Sign up by 31st March for your chance to win.

Terms and conditions