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Home as a pension a bad idea

Don’t expect your home to be your pension pot, warns John Male, managing director, with offices in Birmingham, Wolverhampton and London.

Research by Aegon found that 74 per cent of owners would only trade it for retirement income as a last resort.

But many could be forced to do so against their will in order to pay hugely expensive nursing home fees.

“Owning a home and building a pension need to be viewed separately and are both equally important,” said Mr Male.

“The snapshot found that more than half (53 per cent) of householders want to leave their home to their loved ones, with just four per cent viewing it as a main source of income in later life.”

He went on: “Some pundits would erroneously suggest to young people they need not bother with pensions; the equity in their house will be their pension.

“But data such as this is evidence of how vital a significant pension pot remains. This pot can accumulate through a workplace scheme, a private pension or a long-term savings vehicle such as an ISA – or all three.

“Then hopefully you will be able to build up a sufficient income to cover your retirement, unless of course you want to use your house for this purpose and there is absolutely nothing wrong in doing so.

“The thing is to have a plan, start saving when you are young and periodically take advice to ensure you are on track,

Financial strains are if anything getting worse.

“Indeed one can go further and stress the wider importance of multiple savings capable of covering the many needs of the aged – for example, paying privately for knee or cataract operations when faced with a lengthy NHS waiting list and covering nursing home fees which can easily amount to £40,000 a year.”

For further information, please contact:

John Male, Managing Director,


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