More value in property than pension

May 20th 2016
By: Mary.Wilkins
More value in property than pension

Nearly three quarters of over 55s have more financial wealth in their property than in their pensions – it’s a reminder to use house price growth when planning for retirement.  For landlords this is especially good news. A study by Bower Private Clients has found out that most people over 55 who were surveyed had a mortgage-free home of greater financial value than their combined savings.

62% of over 55s in the South East of England were found to have property worth more than their pension funds.  11% of these thought they would use the money in their property to fund their retirement rather than using their pension fund as an income. A quarter would look to borrow against the value of their property.

Chief Corporate Officer at Bower Private Clients, Andrea Rozario, said: ‘The benefits of property investment are highlighted by the fact that the majority of over-55s have more wealth in their homes than their pension savings.

‘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.’

If you are in a position to buy a property as a future investment and would like to find out more about how to do this, give our Lettings hub a call on 020 8687 0077 or pop in and have a chat in branch.