The Pensions Policy Institute has released its latest offering to the general public - property is not a substitute for pensions. According to the Institute, they fear the general public will shun pensions in favour of putting their money into property, paving the way for equity release when they need additional income in retirement. The Institute has said that there is now more money in property than pensions but because the entire value of a house cannot be released under an equity release plan, the income received could be less than from a pension.
Our View
We do not believe that one particular asset or sector should be used above all others when it comes to planning for retirement. When looking to the future you need to spread your investments. Pensions play a huge part in planning for retirement but they are not the be-all and end-all of it. Neither should property be, even if house price growth is outstripping the stock market, it most definitely will not last. We believe it is better to have a spread. If you have a spread of investments and savings, you will have greater choice when it comes to retirement.