Over-55s plan house purchases
More than a third of people over 55 are planning to buy at least 1 more property in their lives, research by Prudential has found.
The reasons for buying a home were mixed:
- 43% want to downsize
- 33% want to move somewhere more suitable for older people
- 21% plan to move somewhere quieter.
In addition, 18% don’t plan to buy a main residential property. Instead they intend to purchase a second home, buy-to-let properties, development properties or homes for their relatives.
14% say their decision is a direct result of the pension rule changes and 10% think the changes make them more likely to buy a property in the future.
Stan Russell, retirement expert at Prudential, said:
“There was a lot of speculation that the pension freedoms would spark a rush of over-55s investing in buy-to-let property as a means of generating income in retirement. However our research suggests that this hasn’t yet been the case.
“In fact the process of withdrawing cash from a pension fund to purchase property and potentially generate an income is complex and could result in a large tax bill.
“Using money raised from a property sale could prove to be a helpful boost to retirement income for some. But it’s no substitute for starting to save as early as possible to prepare for eventual retirement.”
Contact us to discuss your retirement plans.