Downsizing may not fund retirement

Article

18 June, 2008

Across the UK many people are pinning their hopes on a strong housing market to provide the retirement of their dreams.

More and more people are not saving for retirement. Instead thinking that ploughing all their money into the family home provides them sufficient retirement security.

If downsizing a property could generate a surplus of £150,000 would that be sufficient to fund a long and wealthy retirement? In fact, this would only provide a weekly income of around £130.00.

Retiring and banking on your residence alone to provide a sufficient retirement income is a potential retirement disaster.

A balanced approach to retirement planning is required. This obviously should include somewhere to live. It should also include short, medium and long term savings plans. Such plans should include utilising the annual ISA allowance and using the Tax Relief available for Pensions. Such planning should wipe out the need to sell the family silver and home simply to make ends meet in retirement.

For independent financial advice please call Forbes Solicitors on freephone 0800 689 3206 or contact us by email today.

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