View more on these topics

Property-rich pensioners live in poverty

Pensioners are living below the poverty line despite the value of their properties rising by a total of 10bn over the past three months, equivalent to a 1,500 gain per retired homeowner.

Around 1.25 million pensioners still live below the poverty line, according to equity-release property developer Economic Lifestyle.

The national average property price gains in the first quarter have more than offset a 5.5bn loss on the same basis over the fourth quarter of 2004. Scotland has been the best-performing area, with pensioner homeowners seeing an average gain of 6,339 in property value, followed by Wales and the South-east. Properties in the South-west lost 2,706 in value with East Anglia and the North-east also performing poorly.

Economic Lifestyle managing director Mark Neal says pensioners own around 1 trillion of property and a survey by the group reveals nearly a million say they will consider equity-release schemes in the next three years.

Neal says: “Financially, many retired homeowners are continuing to feel the pinch of poor returns on investments and low pension provisions, but the increase in property values should be welcomed.”

Recommended

PFS has not had its final say on commission

I am afraid that Harry Katz in his recent letter in Money Marketing headlined, Prac-tical knowledge beats the consultants, does not clearly reflect the context in which I commented about the ABI commission paper.

Julian Gibbs

Seven months ago, Fidelity launched its India focus fund, which has attracted no less than $1bn of assets. Fund manager Michael Gordon, who is Fidelity’s chief investment officer for Asia Pacific, is based in Hong Kong but is backed up by his team in Mumbai. He has over 20 years’ investment experience with Rothchilds and […]

Payout deal for split-cap investors

Investors in split caps will hear this week how and when Fund Distribution, the company set up by the Financial Services Authority after the crisis, is to make its payments to those eligible for compensation. Eighteen fund management companies paid into the company in December after reaching agreement with the FSA, with Exeter Asset Management […]

PFS has not had its final say on commission

I am afraid that Harry Katz in his recent letter in Money Marketing headlined, Prac-tical knowledge beats the consultants, does not clearly reflect the context in which I commented about the ABI commission paper. The fact is that we are putting together a response to the ABI. We have asked for member comments and so […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment