Property pension advice
Homeowners should avoid investing in property alone to fund retirement, according to new advice from Friends Provident.The pensions provider has suggested that equity release alone will not be enough to fund post-work life given the recent fall in property prices.Friends Provident found that 33 per cent of UK consumers plan to use property for their pensions income, while 65 per cent of people have yet to start saving for retirement.There is a danger that by relying on property alone, consumers could face a financial struggle during retirement as homeowners fall into negative equity, the company said.Jeremy Ward, head of pensions marketing at Friends Provident, explained: "If house prices continue to fall, people could find themselves in serious financial difficulty with negative equity on their property and no personal pension. "This is a dangerous situation to be in if people don't have any savings or a pension to purchase an annuity for their 'winter' years."
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