Property Outperforms Pensions for those Nearing Retirement

Property wealth is greater than pension pots for six in 10 baby-boomers, according to a new report - meaning many are relying on bricks and mortar to fund retirement

Emma Wall 3 May, 2016 | 4:00PM
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Property assets outstrip pension saving for six in 10 people aged 55 and older in the UK, according to a new report from high net worth adviser Bower Private Clients. Thanks to the property boom of the past 20 years which has seen the average house price increase by around 300% in the UK and more than 500% in London, many aged 55 plus are sitting on a pretty pricey pile.

In contrast, the UK stock market has moved sideways – the FTSE 100 is at the same level now as it was in February 1999. Although this does not take into consideration the power of compound interest on your capital through reinvested dividends, you can see why one in 10 plan to fund their retirement through the sale of their home.

“Stock market volatility and historically low interest rates have had a major impact on pension and investment income since the financial crash while those who are lucky enough to have got on the property ladder have benefited,” said. Andrea Rozario, chief corporate officer at Bower Private Clients.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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