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A new report by the Institute of Fiscal Studies reveals that property holdings are a prime source of retirement wealth.The report titled "The Use of Wealth in Retirement" contains a range of interesting data about how property contributes to retirement wealth.Primary housing is the largest component of wealth held by older households in England.Among those aged 50 and over in 2014–15, 80% were owner-occupiers, and the median level of equivalised housing wealth among owners was £150,000 (the mean was £190,000). Drawing on this wealth could significantly increase spending power in retirement.Outside of primary housing and financial wealth, the largest component of other wealth is that held in second homes – houses, flats or holiday homes (including timeshares). This amounted to 11% of wealth holdings among 55- to 64-year-olds in 2014–15 (shown in Figure 1).Around one-in-six (17%) of 55- to 64-year-olds in 2014–15 held such other property wealth. Changes in second-home ownership at older ages Figure 5 shows how the ownership of second homes (restricted here to those worth more than £50,000) changed over the period 2008–09 to 2014–15, among those individuals who responded to ELSA every two years during that period. Each line of four points is calculated for individuals from a particular date-of-birth cohort.The trajectory of each line therefore illustrates how ownership changed among that constant group of individuals as they aged; vertical differences between lines illustrate how ownership differs between generations when they are observed at the same age.This measure of second homes includes properties that are being rented out (either as buy-to-let or holiday lets) and properties that are used as private second homes.ConclusionMost wealth is held in owner-occupied housing, which is typically thought of as very illiquid. Much less wealth, though still quite large amounts for some, is held in financial assets, while a significant – and in recent years growing – minority hold some wealth in second homes.DOWNLOAD THE FULL REPORT SEE ALSO - The "grey" £ in property ....UP NEXT - Pensions When you Die VideoDON'T MISS - BoE Chief Economist says property > pensionsNOW WATCH:
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This is no surprise
what choice was there 20 years ago Buy a pension ???
all the miss selling of pensions did great harm then pensions were like a straight jacket
Folk can see bricks and mortar and they see the prices rising in there own street
It was a dead cert and a great number including myself bought into the dream of a secure financial future
Today with pension freedom the Tables have been turned
I chose both today BTL & Pensions
I was looking at my Pensions this morning and one of my platforms has grown by over 6% since Jan
Its all Tax Free and I did nothing to earn the 6%
The Govt will also look at this sort of thing and will think we don't have a shortage of houses because they are owned by Landlords
They can't build enough homes so they will make us sell what we have so FTB etc.
Learn Change and Adapt ?????
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