You are here: Home - Retirement - Retiring now - News -

Poor pensioners have high levels of homeownership

0
Written by: Paloma Kubiak
23/04/2018
Pensioners with the lowest incomes have higher levels of homeownership than many of those with greater income, benefits and state pension.

In 2016/17, the homeownership level among retirees with the lowest disposable income (£7,619) stood at 89% – the equivalent of nearly 660,000 households.

This is 40,000 higher than three years earlier, according to the latest Office for National Statistics’ Household Disposable Income and Inequality figures.

The level of homeownership by poorer retirees is much higher than the 66% recorded for those with the lower middle income band (£17,493).

Analysis of the figures by Just found that homeownership by lower income retirees was almost as high as the richest tenth with an income of £55,365 – at 94%.

homeownershipretireeJust

Stephen Lowe, group communications director at Just Group, said property is often claimed to be the best way to save for retirement but given the figures, higher home ownership levels doesn’t equate to higher income.

He said: “In fact, we see that both the poorest and the richest pensioners are among the most likely to own their homes, with those who live on average incomes less likely to do so.”

Lowe said the figures should make working people think about saving more into pensions as the most reliable way of providing an income stream.

Further, anyone struggling in retirement should check that they are claiming full state benefits.

He said: “It is worth pointing out that it is how much you accumulate in state, employer and private pensions that appear to make most difference to how much income you have in retirement.

“That’s a strong argument in favour of ratcheting up pension auto-enrolment minimum contributions and encouraging the self-employed to pay into pensions too.

“It is also noticeable too that the pensioners with the lowest incomes also receive the lowest benefits. It’s important they make sure they are claiming their full entitlement and not be put off making inquiries just because they may own a property.

“Overall, the message is that building up a pension is one of the best tools for delivering retirement income but those with property do have choices. Either way, people need to ensure they take guidance and advice to use their assets wisely.”

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.

Thousands choose to stop receiving state pension

More than 14,000 people chose to stop receiving their state pension in 2018/19, research reveals.
Thousands choose to stop receiving state pension

Monzo and Nationwide win the current account switch battle

Monzo and Nationwide gained the greatest number of current account customers in the three months to September...
Monzo and Nationwide win the current account switch battle

Affordability worsens for first-time buyers

The costs to first-time buyers stepping onto the property ladder have increased over the past year, data from...
Affordability worsens for first-time buyers

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

Read previous post:
MPs debate doubling council tax for owners of long-term empty homes

Legislation to hand councils more power against owners of long-term empty homes is being debated in parliament.

Close