Many advisers have spoken of hearing prospective clients or acquaintances comment that their home is their pension.
While there is some element of truth in that – namely an understanding that one’s residential home may have gone up in value to such an extent there may be a good capital gain or equity release value in the house – advisers have sought to dispel the myth that one’s house can fund retirement.
After all, it only takes a slowdown in the housing market to start pushing people into negative equity.
Similarly, ‘occasional’ landlords with one or two properties in the past may have been able to secure some rental income, but with so many tax changes coming into force in recent Budgets, relying on buy-to-let as a retirement income strategy has also become precarious for all but professional landlords…
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