According to the latest research from Canada Life, it shows evidence that the UK’s younger generation is three times more likely than the older generation to use their property wealth to fund retirement.
There has been evidence proving that 9% of 16-54-year olds predict that they store their wealth in their homes as their main source of income in retirement, which is triple the number of those aged 55 and over (3%)
Canada Life states these statistics suggest that the younger generation can identify the role that property wealth will aid in financially supporting their later livers and they’re generally more comfortable viewing their wealth holistically.
The reports discover that half of under-55s predicts that either their workplace or state pension will offer them adequate money in retirement (50%), while on the other hand, 21% believe that their savings will cover their income needs.
There is evidence from HMRC in April that revealed record tax receipts which demonstrate many people are accessing their pensions in earnest following the pension freedoms reform in 2015. The 21% who think they will have enough savings may be more in hope than expectation, with research finding that a significant number of people underestimate their life expectancy. Consequently, some people may not have sufficient funds for their retirement.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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