Nearly half of Brits do not plan to use money tied up in their homes to fund their retirement, a new survey indicates.
The Government's call for more people to save towards their retirement to avoid a pension crisis, has left many believing that many people in the UK would use their property as equity to fund their retirement.
According to research by financial services group B&CE,45% of those questioned said they did not foresee using any equity from their property towards their retirement, although 20% added they might use a small portion of the value in their home.
Contrasting concerns about the shift in favour of property over pensions, the B&CE survey suggests only one in five people expect to rely heavily on property to fund their retirement.
For older generations, or those people aged between 55 and 64, only 14% believe they will dip into their property equity to fund their retirement, whereas a third of people aged between 34 and 44 expect to fund their retirement through their homes.
B&CE also found as many as 32% of those questioned are unaware of pension contributions as a means of attracting tax relief, while a further 45% do not have any pension provisions set up, compared with 34% of those people aged between 25 and 34.
John Jory, deputy chief executive of B&CE Benefit Schemes says: “It would seem that relying on one’s home to provide an income in retirement is not seen by those interviewed as a viable option for many in the UK. We believe that the majority of the UK population see their home as just that.”IFAonline
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