Property for pensions: Generation X plan to use bricks & mortar in retirement
Generation X – those between the ages of 35 and 54 – have been shown to think property is an astute part of their retirement planning
The Pensions and Lifetime Savings Association has found that over 8.3 million people in this age bracket see bricks and mortar as part of a later life investment strategy, although many of them are yet to even own their first property.Property as a complement to – or even a replacement of – a traditional pension is a growing trend. More tangible than stocks and shares, better yielding than cash ISAs and bank accounts, and easier to understand than SIPPS and annuities, property is an investment Generation X have confidence in.Those thinking of adding property to their pension portfolio are urged to seek professional advice before making future plans: “Investing in property remains a good long-term investment,” says Tiburcio Sanz, the Property Manager & BDM of Property Wealth Management at mews-specialist estate agency Lurot Brand. “Generation X should, however, plan in tandem with property and pension specialists to ensure they are aware of all the eventualities and outcomes. Smart property purchases can make a massive positive different to retirement and Lurot Brand has helped many clients successfully plan for the future with property as part of an investment strategy.”
In London, where property prices are the highest in the country, an estimated 330,000 people (13%) are planning to fund their retirement with property they are yet to buy.