New research suggests property is the pension pot for younger generation 

 

New data collected by Canada Life Home Finance indicates that the younger generation anticipate using equity from their home to provide for their retirement. 

The Canada Life Home Finance report states that in the UK, young people share a more holistic view to the wealth home ownership can create.   

Of the 16 to 54 year olds surveyed, 9 per cent expect the equity accrued in their homes will provide the bulk of their retirement income.   

Under 55’s three times more likely to rely on home equity 

They are three times more likely than those aged 55 and over, to look to their home as a way of financing their retirement years.  This mind set emphasises the potential for equity release which is moving into mainstream financial planning. 

Half of under 55s believe that their state or workplace pension will provide them with sufficient funds on retiring, while 21% trust that their savings will cover their income needs. 

Alice Watson, head of marketing and communications at Canada Life Home Finance said: “It is good that the younger generation recognises that they can unlock wealth from their property in retirement. This openness is likely driven by the reality that many under 50s will receive less generous pensions under the defined contribution scheme, compared to the majority of the older generation on the defined benefit plan.” 

21 per cent surveyed planning on savings to fund retirement 

However, the 21 per cent of those banking on their savings may be proved wrong. HMRC’s record tax receipts in April 2019, show a considerable rise in the number of people drawing down on their pensions after the freedom reforms in 2015. 

There is a tendency for people to underestimate their life expectancy and not have enough savings to cover their retirement years. 

Alice Watson added: “Following the pension freedoms, there is a growing fear that people’s retirement income might not be able to provide them with the sort of lifestyle they’re hoping for. 

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

New research suggests property is the pension pot for younger generation 

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.