More than one in five British adults who are not already retired (21 percent) plan to sell their home and live off the profits as part of their retirement plan, whilst more than one in six (16 percent) indicate that they do not plan to retire at all, according to the results of a new survey from pension consultants LCP and research analysts YouGov.
The survey results which were released as part of the launch of the ‘Future Pensioner’ campaign from LCP also show that views appear to change the older people get, with far more of those 55 and over (44 percent) indicating they don’t plan to rely on their home as their pension (compared with 32 percent overall).
This could either be because the current generation of those 55 and over have a more generous pension provision, or because people are less willing to give up their home as they get older.
The ‘Future Pensioner’ campaign seeks to shine a light on the state of pensions and retirement savings in the UK, and raise awareness of and debate around key elements of ensuring the pensioners of tomorrow make better decisions today.
Taken together, the survey suggests a dependency upon investing in housing, rather than formal pension arrangements. This reality comes as the government has recently announced a future expansion of pension’s auto-enrolment in the UK, as part of its wider review of the programme’s implementation.
Alex Waite, a partner at LCP, said it was "fairly common to see a strategy of ‘my house is my pension’, particularly amongst the relatively young. One-fifth of working adults indicate an intention to use their home as a pension, but this figure drops significantly as people grow older."
“Despite all the progress which has been made in raising awareness and understanding of the importance of retirement planning and savings strategy, this research shows just how far there is still to go. There is far too high a proportion of UK adults for whom long-term planning is not a priority at all, and there appears to be an over-reliance on home ownership as a sole or primary means of retirement.”
The survey also found that, one-third of Britons (33 percent) have indicated that saving money into a pension is not an important financial commitment for them at the present time. One-quarter (25 percent) indicated that pension saving was ‘very important’, and whilst one in five respondents plan to use their ‘house as their pension’, only one in seven believe that most of the retired people they know have done this, indicating a significant potential gap between perception and reality.
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