08 July 2008
Two surveys in the last week are showing that the current
economic situation, and specifically predictions of falls in house
prices, are making us rethink the power of property to ease
retirement.
A poll by the Association of British Insurers has indicated 65%
of people thought that property was the 'best long-term
investment'. However, significant numbers of pensioners hoping to
downsize now, i.e. sell their home, buy a cheaper one and bank the
cash, are struggling to realise that ambition.
And according to a new survey by Baring Asset Management,
millions of people may be getting the message. According to the
Barings survey, as many as 2m people have started to review their
pension plans, and 6m fewer adults were planning to use property to
fund all or part of their retirement compared to last year - with
only 878,000 people now planning to use property to fund all of
their retirement.
People hoping to use property to fund their retirement range
from those using a buy-to-let investment as a source of income or
of capital, to those taking the risky approach of relying on
selling their own home to release some cash.
