You are here: Home - Mortgages - First Time Buyer - News -

Should we have a ‘Help to Buy’ pension?

0
Written by: Christina Hoghton
10/03/2016
Many younger savers would consider a pension scheme that let them dip into their pot to fund a property deposit.

Over a third of adults aged 18-34 would invest more in a pension if they could access some of their money early before retirement, according to NFU Mutual.

Younger generations say they’d use the money as part of a mortgage deposit.

Such a scheme – dubbed a ‘Help to Buy pension’  – could help struggling house buyers desperate to get on the property ladder. NFU Mutual found that a quarter of adults would invest more into a pension if they could access a lump sum before they turn 55. Of those who would invest more, one in six said they would be inclined to use it as a deposit on a house. This increased to a third among to 18-24 year olds.

Sean McCann, chartered financial planner at NFU Mutual, said: “We’ve already had Help to Buy mortgages and Help to Buy ISAs, so a Help to Buy pension isn’t as unlikely as it may sound. Borrowing money from your pension to help people buy their first home is already part of the savings culture in Canada, for exmaple, and our research suggests it could prove popular here too. If the Chancellor is looking to encourage people to save more for their retirement this could be an option.

“At the moment, getting on the property ladder is more of a priority for young people, pension savings may not start in earnest for some until they’re well into their 30s. That may mean they work for much longer or retire with a much lower income than they had hoped.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Woodford tops most traded funds in February – The Share Centre

Star fund manager Neil Woodford has topped the table of the most traded funds for the ninth consecutive month according...

Close