The Chairman of the FCA has warned that people should not rely on their property to fund their retirement. Andrew Bailey said that the idea was unwise, as returns are uncertain over the long-term.
The Telegraph reports –
“Mr Bailey also raised caution over using property to fund a pension by taking out an equity release mortgage, many of which come with complicated – and sometimes expensive – guarantees… Rather than putting all their eggs in one basket savers should have a balanced portfolio of investments, of which property could form a part, he said… ‘There is an argument that pension saving would be assisted by people holding more housing in their stock of pension assets, based on the real appreciation in the value of housing. I don’t subscribe to this argument.’ The warning comes as fresh data reveals the property wealth of over 65s in Britain has surpassed £1 trillion for the first time.”