Mortgage News
Brits still invest hopes in property
More parents would advise their children to put their money into property than in a pension.
Research carried out by retirement specialist LV= revealed that 54% of the over-50s still in work would tell their offspring to invest in property as a means of supporting themselves in retirement, compared to 53% who would recommend paying into a pension.
The research also discovered that 23% of working over 50s plan to use some of the equity in their own home to provide them with income in retirement.
LV= dubs these people as HIP-pies – ‘Home Is Pension’.
Currently, 44% of working people over 50 still have a mortgage to pay and a fifth of them say that an increase in interest rates would reduce their ability to save for retirement.
Most worryingly, the proportion of the over-50s workforce who say that they will have to delay their retirement for financial reasons has soared, from 28% a year ago to 41% today.
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Vanessa Owen, head of equity release at LV=, said: “It seems to be increasingly commonplace for those approaching retirement to consider using the equity in their property as part of their overall retirement plan.
“Continuing doom and gloom over volatility in the housing market and seeing some properties fall in value, hasn’t deterred the UK’s “HIPpies” and 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.”