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
'Start planning now' for overseas retirement, says expert
Pensioners planning to retire overseas need to start making financial plans now, it has been claimed. According to a poll conducted by Scottish Widows, more than one-third of Britons are planning to leave the UK when their pensions come through. This is expected to swell the numbers of retirees living abroad to 3 million by 2050, as pensioners leave the hustle and bustle of their native country be...
Read MorePensions Black Hole May Reduce Taxes By £10 Billion A Year
Even though we are seeing more and more final salary company pension schemes sold off to third parties in order to reduce company liabilities and exposure, it seems that the short fall which many are having to make-up before selling their schemes may cost the Treasury dearly. Leaders of the pensions industry have flagged the problem which seems to be getting worse. In essence the problem revol...
Read MoreShould the formal retirement age be abolished?
A report by the Equality and Human Rights Commission has today prompted a very controversial and deep thinking argument regarding the UK retirement system. The commission has called on the government to abolish the formal retirement age and indeed introduce incentives for employers to retain those more mature workers and use their experience for as long as possible. But is this something of a doub...
Read MoreAlliance Boots to outsource part of company pension scheme
Alliance Boots, the merged operation between Alliance Unichem and Boots, has today announced the outsourcing of its £300 million defined benefit pension scheme which was the old Alliance Unichem pension arrangement. This scheme has around 3000 members with liabilities of around £300 million although this is only a small portion of the company's overall pension arrangements. The assets have be...
Read MoreTrust in the pensions industry is falling
12/03/2015 TD Direct Investing has found that 46% of people do not feel like they have had enough guidance to decide what to do with their pensions following the upcoming pension freedoms. The survey found that 46% of people do not believe that they have been given enough guidance to make the best decision regarding their pensions, and 48% of people say they no longer have trust in the indu...
Read More