Homeowners should not rely on their properties as an alternative retirement nest egg to pensions, a new report warns.
The Pensions Policy Institute (PPI) says few people will have enough equity in their houses by retirement age to live comfortably without some form of savings.
Retirement deals promising cash back on homes worth more than £330,000 only release a maximum of 20 per cent of the value of a property, giving an income of about £100 a week.
Where a property is worth less, the amount released may be far lower.
And despite the continuing boom in house prices, pensions still offer a higher average yearly growth.
Since 1970, pension funds have grown by 11.6 per cent a year while property has grown by 11.1 per cent.
The report adds that only the wealthy, who can invest in more than one property, can rely solely on homes as an income.
Wednesday May 26, 2004
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article