Pension planning: think laterally

Most advisers have at one time or another hear the often flippant remark from clients that their house is their pension, especially when rebuffing the suggest that they consider contributing to a pension plan.

Jon King
Jon King

Recent research from Barings Asset Management highlights the depth and extent of this belief and intention amongst the wider public.

Headlines like “4.1m people relying on property as pension” of course generates the necessary interest but also reflects real research which confirms the extent to which the public believe in the concept.

Other aspects include 17 per cent of people questioned confirming that inheritance would form part of their retirement fund. Its hard to imagine that answer 20 or 25 years ago.

The real message underlying this interesting research is the extent to which people are thinking laterally about retirement funding and coming up with more imaginative solutions.

This fits very well with the concept and practice of financial planning at retirement and would suggest a receptive audience.

Despite this, many advisers still feel uncomfortable suggesting alternatives such as equity release, preferring to help with annuities and investments.

For those who have not tried it, test the concept with clients – you may be pleasantly surprised at the outcome.