the answer to the pension crisis...

lemonjelly

Appears to be HPI, according to most members of the general public (based on a poll admittedly)

http://news.bbc.co.uk/1/hi/business/8388006.stm

Clearly the vast majority of the public are still believing that HPI will return, & will fund their retirment, pension etc.

NB those polled were all over 50, therefore have experienced previous recessions. Despite this, the majority still expect HPI to return.

What really surprised me, is that given their homes are essentially their retirement fund, the poll asks what they will do to remedy the losses over the past 12+ months. Almost a third have responded with "do nothing & wait for prices to re-correct in the coming months".

Hmmm. Are thos on here who anticipate further falls deluded? It seems clear they are in the minority after all.

Further, were the recent falls just a blip, & the correction is actually happening now to get us back to normal?

the_ash_and_the_oak

sentiment has never changed about this imo (and don't think anything would have changed it) - and tbf to them 2008-2010 isn't the day of cashing in for most of these

IveSeenTheLight

lemonjelly wrote: »

Further, were the recent falls just a blip, & the correction is actually happening now to get us back to normal?

Actually we are above the long term trend for house prices and need falls to return to that trend line.

Some of us thought that would happen during the winter dip, however that has not as yet materialised

PasturesNew

My plan was always: buy a house, downsize to a retirement place when I'm about 70.... they tend to be cheaper, so there's a bit of a cash pot then. But most people still try to hang onto a house that's too big and hard to maintain rather than downsizing for some odd reason.

the_ash_and_the_oak

PasturesNew wrote: »

My plan was always: buy a house, downsize to a retirement place when I'm about 70.... they tend to be cheaper, so there's a bit of a cash pot then. But most people still try to hang onto a house that's too big and hard to maintain rather than downsizing for some odd reason.

totally agree w this - kinda weird when my gparents STR they were so 50-50 on it for a while - a real wrench to leave it but at same time so many worries about the place. So glad it worked out imo

doire_2

lemonjelly wrote: »

Appears to be HPI, according to most members of the general public (based on a poll admittedly)

http://news.bbc.co.uk/1/hi/business/8388006.stm

Clearly the vast majority of the public are still believing that HPI will return, & will fund their retirment, pension etc.

NB those polled were all over 50, therefore have experienced previous recessions. Despite this, the majority still expect HPI to return.

What really surprised me, is that given their homes are essentially their retirement fund, the poll asks what they will do to remedy the losses over the past 12+ months. Almost a third have responded with "do nothing & wait for prices to re-correct in the coming months".

Hmmm. Are thos on here who anticipate further falls deluded? It seems clear they are in the minority after all.

Further, were the recent falls just a blip, & the correction is actually happening now to get us back to normal?

Whats normal?

ukcarper

PasturesNew wrote: »

My plan was always: buy a house, downsize to a retirement place when I'm about 70.... they tend to be cheaper, so there's a bit of a cash pot then. But most people still try to hang onto a house that's too big and hard to maintain rather than downsizing for some odd reason.

That's my intention maybe even earlier but like you just for a bit of extra cash. I wouldn’t like that to be my only source of income as when you take into account moving fees the average person won't get a vast sum of money.

HammerSmashedFace

lemonjelly wrote: »

Appears to be HPI, according to most members of the general public (based on a poll admittedly)

http://news.bbc.co.uk/1/hi/business/8388006.stm

Clearly the vast majority of the public are still believing that HPI will return, & will fund their retirment, pension etc.

NB those polled were all over 50, therefore have experienced previous recessions. Despite this, the majority still expect HPI to return.

What really surprised me, is that given their homes are essentially their retirement fund, the poll asks what they will do to remedy the losses over the past 12+ months. Almost a third have responded with "do nothing & wait for prices to re-correct in the coming months".

Hmmm. Are thos on here who anticipate further falls deluded? It seems clear they are in the minority after all.

Further, were the recent falls just a blip, & the correction is actually happening now to get us back to normal?

I wouldn't call anyone deluded (well ok I might:D), but this kind of survey just highlights those who let the Press and media news wash over them, and those who actually look a little deeper into the rabbit hole.

I don't perceive myself to be an economic guru by a long shot, but I bet I could run rings around many of these people, who when the media say jump, they say, how high ?

Economic constraints in credit, energy, debt etc... mean this recession will be unlike any other. For instance I will bet a tidy sum that within 2 years of coming out of this recession, we will be in another.

You can't defy the laws of physics or economics, growth, the like we have seen in the decade 97-07 will not be seen again.

the_ash_and_the_oak

yes but its not really about that - measuring sentiment isn't about measuring logic (tho they are not opposites either and may just as well coincide as not). this survey isn't about 'what will happen' its about 'what people think will happen'

the_ash_and_the_oak

eg betting on first scorer in a match - the odds change if more people bet on one scorer (this hasn't changed the likelyhood of that scorer being first)

HammerSmashedFace

the_ash_and_the_oak wrote: »

yes but its not really about that - measuring sentiment isn't about measuring logic (tho they are not opposites either and may just as well coincide as not). this survey isn't about 'what will happen' its about 'what people think will happen'

Fair enough, I guess what it means then, is that at some point there is going to be a lot of disappointed people.