Brits believe property is the best investment

It appears that an increasing number of people would tell their children that it’s more reasonable to invest their money into property than in a pension.

The survey conducted by LV= has shown that 54 per cent of the workforce who have passed the threshold of 50 think their children should invest into property to be able to support themselves in retirement, whereas 53 per cent of respondents said they would recommend investing into a pension.

Furthermore, the survey has revealed that 23 per cent of the same age group (over 50s) are going to to use a part of the equity in their property to get a supplement to their income in retirement.

LV= humorously call these people HIP-pies (‘Home Is Pension').

At present, about 44 per cent of working Brits over 50 still have to make their mortgage repayments, and around 20 per cent of them claim that if the interest rates increase, they wouldn’t be able to save for retirement as much as they do now.

One of the most alarming findings is that the percentage of the over-50s who admit that they will be forced to put off their retirement because of money issues has significantly increased, from 28 per cent in 2009 to 41 per cent now.

Thus, more and more British people nearing pension age think about using the equity in their property as part of their pension plan. Despite the instability of the housing market the "HIPpies" are still convinced that their home can secure them a more comfortable retirement.

 


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