The Pros and Cons of Using your Home as a Retirement Pot

By April 10, 2017Essex
Using your Home as a Retirement Pot

Many believe that their home will provide a sufficient income for their retirement and research suggests that homeowners save less into their pensions than people who rent their properties. The research by the National Institute for Economic and Social Research found that people with mortgages to pay off are saving less into their pensions, resulting in an average of 15% less pension income in retirement.

While it can be argued that paying into a mortgage is an investment in itself, the value of your property at the time of retirement may not be as much as you expected due to fluctuations in the housing market. House prices tend to increase for long periods between each crash, giving the perception that property always increases in value.

Investing in property could pay off and provide a good level of income for your retirement, but it is not guaranteed so it is important to not put all of your eggs into one basket and consider paying into a pension.

It is imperative that you seek pension advice from an independent financial advisor to ensure that you have the most effective and efficient pension planning strategy in place that is tailored to your personal financial situation and provides a sufficient income for your retirement.

If you are looking for independent pension advice in Essex, we can help you find the right pension adviser to help you plan for your future in these uncertain times and provide a good level of income for your retirement.

The financial advisers we recommend are experienced in retirement and pension planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Essex.

Pensions Vs Property

While property remains a worthwhile long-term investment, it is important to avoid pouring all of your money into your home at the expense of your pension. Pensions offer many benefits over property such as:

  • Tax relief
  • Employer contributions
  • Lower volatility
  • Greater access and flexibility

Many people use their property as retirement income by downsizing to a cheaper property or renting out rooms, it may also be worth considering equity release. Equity release is the process of turning some of the value of your home into spendable cash while continuing to live in the property, either through a lifetime mortgage or homer reversion plan. Before releasing equity in your property, it is imperative you seek financial advice to ensure you are making the best decision based on your circumstances and to explore other options that may be available to you.

At we can help you find a registered financial adviser for pension advice in Essex. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances and meets your financial and retirement objectives.


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