The Bank of England chief economist who caused an outcry among advisers for saying they do not understand pensions has argued property is a better bet for retirement saving than a pension pot.
Speaking to The Sunday Times, when asked whether owning a property or a pension was better for retirement, Andy Haldane answered “almost certainly property”.
He says: “It ought to be pension but it’s almost certainly property.
“As long as we continue not to build anything like as many houses in this country as we need to meet demand, we will see what we’ve had for the better part of a generation, which is house prices relentlessly heading north.
“I would quite like the day to come when that wasn’t the case, but we’ve got a lot of catching up to do.”
In May Haldane admitted he could not make “the remotest sense of pensions” and added “conversations with countless experts and IFAs have confirmed for me only one thing – they have no clue either. That is a desperately poor basis for sound financial planning.”
He told the newspaper: “I must admit that when I said that pensions were complicated, I hadn’t expected it to be a statement of great controversy.
“My experience since then has rather reinforced the impression that most other people find them quite complicated too.”