Relying On Property For Our Pension
Published / Last Updated on 12/11/2007
A recent survey by Barings Asset Management has revealed that 7 per cent of the adult population are relying on property to fund their retirement. Barings are warning that this will leave them exposed to fluctuations in the property market.
The research also revealed that 33 per cent of adults was not currently making ay provisions for their retirement.
Our view
Property forms a major part of all our lives, we save for 25 years or so just pay off our mortgages. The risk, as Barings have highlighted, is over exposure to one market is a high risk strategy. In addition, do not forget that second properties are subject to Capital Gains Taxes when you sell and income taxes on any rental incomes.
Useful links:
Learn more about this and related topics in the Pensions Adviser Channel
Request expert financial advice now
Purchase guidance on financial planning in the Money Shop
