View more on these topics

Home truths on pension asset

Jon King MS blog

A good question to ask clients is whether people consider their house to be part of their pension.

Believe me, you will be amazed at how many people say yes, and this is regardless of wealth or social standing.

How they envisage this wealth and how they could use it does vary – for example requiring an income or a capital sum to perhaps help grandchildren.

Clients have also used equity release to buy second homes both here and abroad.

This trend to see houses as part of pensions is frequently repeated in The Daily Telegraph which runs a section on celebrities and how a specific chosen celebrity views money issues.

For example, a recent edition that I read featured Davina McCall who described how she and her husband did up properties to sell on and she viewed their house as their pension.

In the same column a few years previously Ian Botham said the same thing.

These types of comments, which are hardly unusual, repeatedly ram home the message that property is an extension of an individual’s wealth as well as a place to live.

This is a feature of the new generation coming through middle age and heading towards retirement.

A generation earlier would be very reticent to admitting that their house and its money could be used to improve their pensions.

As more people reach retirement with a mortgage this is a conversation that is going to become more and more common.

Recommended

Govt castigated as ”schizophrenic” on NewBuy and FirstBuy

The Government’s NewBuy and FirstBuy schemes are “ schizophrenic” and “politicians seeking votes” while avoiding the underlying problem of a diminishing stock of houses. Paragon Mortgages managing director John Heron says the regulator’s attitude towards higher LTV lending is at odds with these schemes designed to encourage riskier lending. Speaking at the Paragon great buy-to-let […]

MS Leader: Nationwide right to U-turn

It was great to hear on Friday the late-breaking news that Nationwide had U-turned on its decision to stop providing buy-to-let loans to landlords with tenants on housing benefits. On Wednesday last week when it was first revealed that Nationwide had changed its terms to exclude landlords with tenants on benefits, the lender was tight-lipped about […]

RBS logo large 440

RBS reports £5.2bn pre-tax loss

Royal Bank of Scotland made a pre-tax loss of £5.2bn in 2012, compared to a £1.2bn loss in 2011.

China tech and Global Alpha: a new great leap forward

By Robin Geffen, Fund Manager and CEO

Internet giant Alibaba is exactly the type of entrepreneurial company that the high-conviction, top-performing Neptune Global Alpha Fund seeks to invest in. Established just 14 years ago in an apartment in Hangzhou, today Alibaba is larger than Amazon and eBay put together and is challenging some of the most powerful internet companies in the world…

Read more 


Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • John Constable 6th March 2013 at 12:04 pm

    Yes, the case for ER has certainly moved well away from the deeply negative (mid-1990’s) view as the ‘chemotherapy of personal finance’ to something much more positive i.e. a store of wealth that could be unlocked to assist in retirement.

    All the bad memories of flawed ER schemes of the past are now receding and this is one sector of personal finance that has a very bright future, as long as the Government/regulator does’nt manage to screw it up, which unfortunately is always a real possibility.

    Jon is right that the current celebrity obsessed culture is helpful in this regard, the everyday public do appear to give undue weight to what these celebs say, and in this context, it is helpful for ER.