View more on these topics

Pensions shouldn’t be used for property, advisers say

80 per cent of advisers disagree with the suggestion first-time buyers should be able to use pension toward buying a home

An instant backlash followed last week’s suggestion from housing and communities secretary James Brokenshire that people should be able to take money from their pension funds and contribute it to a house deposit.

Department for Work and Pensions officials distanced themselves from the policy proposal by writing to Downing Street to say they had not approved the idea.

According to a Money Marketing poll, advisers are overwhelmingly against such a policy with 80 per cent of the 140 respondents saying they believed first-time buyers should not have access to their pension for a house purchase, and 13 per cent saying they should.

 

In a speech last Monday Brokenshire said: “We should be changing the necessary regulations to allow this to happen, protecting the integrity of pension investments but allowing lenders to innovate and design new products to bring this opportunity to consumers.

“It seems rather obtuse that we would deny people the opportunity to do this, given that we know those who own their own home by retirement are on average wealthier and do not have the burden of the largest expense in retirement – accommodation. And it is, after all, their money.”

On Twitter the policy did not look too popular either.

Recommended

1

L&G sells insurance business to Allianz

Legal and General has sold its general insurance business to Allianz. The deal, which is expected to go through in the second half of this year, comes at an up front cost of £242m. However, L&G notes that there are also “potential further payments over a three year period from ongoing commercial arrangements”. In a […]

BoE boss warns he’s watching lenders ‘like a hawk’

The boss of the Bank of England’s Prudential Regulation Authority has warned that regulators should be watching lenders “like a hawk” over fears that banks are offering ever more risky home loans. Speaking at the Building Societies Association’s 150th birthday conference in London on Friday, PRA chief executive Sam Woods raised concerns about increasing loan-to-income […]

Retirement - thumbnail

(Another) downhill stroll — retirement planning

A report published this morning by the CIPD (CIPD Employee Outlook March 2015) provides yet more interesting data to the changing landscape of retirement planning. It should be remembered that we are in a period of genuine flux here given that the default retirement age was scrapped three years ago, and new pension freedoms come online in April. Both of these alterations will have a huge impact on how employees plan for their retirement.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Astonishingly bad idea!The notion of forgoing resources for retirement in favour of today is a direct contradiction of previous policy for ‘compulsory saving’via legislation!

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com