Will you need to sell your home to fund your retirement?
A report by LV has thrown a very dark shadow over the UK retirement sector with a suggestion that 1.2 million people will in the future need to sell their homes to fund their retirement. It would appear that more and more people over 50 are now dependent upon their homes as an asset for the future and will be forced to downsize in due course.
Those who are looking to retire in the short term may well be forced to sell their properties at relatively low prices as a consequence of the credit crunch and the resulting economic situation. As a result of reduced savings and reduced equity in their homes this could lead to a significantly fall in pension income in later life. When you also take into account the fact that state pension payments in the future could well be means tested it seems that we are seeing something of a pincer movement for those in the middle income ground.
Even though more people than ever before have made arrangements for their future, the reduced return on capital invested in the short to medium term will impact upon those on the verge of retirement.
Share this..
Related stories
Pension shutdown 'threatens millions'
Millions of young and middle-aged people could find themselves without sufficient retirement funds because of the government's failure to respond to company scheme closures, the Association of Consulting Actuaries (ACA) has warned.A new survey published today shows that 81 per cent of firms do not offer their defined benefit pension schemes to new entrants, up from 69 per cent two years ago.The AC...
Read MoreExpat pensioners lose court battle
The UK government is this evening breathing a sigh of relief after winning a European Court of Human Rights battle which could have resulted in a £500 million a year additional bill for the UK state pension. The case revolves around a number of expats who have moved overseas to places such as Australia and Canada and are currently only receiving the pension payable upon their retirement in the UK...
Read MoreGovernment announces changes to pension age
The UK government has today brought forward the increase in state pension age to 66 years from 2020 which is a significant six years earlier than previously indicated. Buried in the back of the comprehensive spending review there are also plans to accelerate the increase to 68 years with an option to increase the pension age above and beyond 68 years. So what will this save the UK government in th...
Read MorePersonal finance 'scarier than terrorists'
Britons are more concerned about their own financial situation than the threat of a terrorist attack, a new survey claims.According to bank Abbey, climate change and everyday crime also cause much fewer sleepless nights than money worries.Today's research shows that finances are perceived as the biggest threat to the quality of life in the UK by 24 per cent of respondents.In contrast, 11 per cent...
Read MoreGlobal pension schemes fall in value by £3.8 trillion
Respected consultancy and actuaries Watson Wyatt has today revealed figures suggesting that global pension arrangements have fallen in value by some £3.8 trillion over the last year. While the UK sector has had a very difficult time to say the least it would appear that the worldwide sector has performed considerably worse and there are serious concerns about the ongoing gap in pension liabilitie...
Read More