Pensions continue to plunge

Turnbull2000

http://www.bbc.co.uk/news/business-14920735

The pension income bought from retirement savings has fallen by 14% compared with the start of the year owing to market turmoil, experts say.


The effect of falling share prices and annuity rates means that a 65-year-old's £100,000 pension pot would buy a retirement income that was £926 lower.

The experience has made him question the whole idea of pension saving.


"I really would be quite cautious about pensions," he said.


"I mainly put money in bricks and mortar and have done better than many friends who ploughed money into pensions over the years - they have been turned over," he said.

We all know property provided huge returns throughout most the noughties, but how does it compare to other investments since 2008? Aside from a short sharp shock for prices and rents following the crunch, both seem have recovered quite strongly and rents in particular look set to march upwards over the coming years.

Really2

I would argue the increase in BTL since 2008 has been mainly due to to people shifting from cash and stock market based retirements in to housing.
If you had the cash to buy and rent, a retirement return would not be bad and at least you could get an increase each year that beats inflation.

The_White_Horse

it won't have knocked the public sector's defined benefit schemes will it. they will keep on getting full whack.

Turnbull2000

Really2 wrote: »

I would argue the increase in BTL since 2008 has been mainly due to to people shifting from cash and stock market based retirements in to housing.
If you had the cash to buy and rent, a retirement return would not be bad and at least you could get an increase each year that beats inflation.

I'm increasing hearing (and reading) of people deciding their money is "getting nothing" in the bank and piling into property. One chap recently made redundant at my firm had a small fortune in cash and became disillusioned with poor returns - he's now the owner of three investment properties.

Combined with many people renting out rather than selling and sticking with their residential mortgage, I reckon the proportion of property now held as an investment is way bigger that most expect.

kabayiri

Really2 wrote: »

I would argue the increase in BTL since 2008 has been mainly due to to people shifting from cash and stock market based retirements in to housing.
If you had the cash to buy and rent, a retirement return would not be bad and at least you could get an increase each year that beats inflation.

Better still, if you can spread your risk by buying stake in property in somewhere like Canada, you hedge your bets if the UK economy tanks.

kabayiri

Turnbull2000 wrote: »

I'm increasing hearing (and reading) of people deciding their money is "getting nothing" in the bank and piling into property. One chap recently made redundant at my firm had a small fortune in cash and became disillusioned with poor returns - he's now the owner of three investment properties.

Combined with many people renting out rather than selling and sticking with their residential mortgage, I reckon the proportion of property now held as an investment is way bigger that most expect.

There's a guy who I used to work with who was living in what he called a 'Summer House', I kid you not. I thought of it this morning because they were discussing it on Radio 5.

It's the kind of erm summer house which has it's own bathroom facilities!

I didn't inquire too deeply but I believe there was some financial recompense for this arrangement.

Will we see loads of pensioners claiming to take up an interest in gardening and ordering the biggest shed they can find from Wickes?!
:rotfl:

vax2002

Continue to be Plundered will be a better title.
those that have the money you have invested still spend more on lunch than you get live off for a week, still drive top of the range BMW's, play golf and generally live to extravagance... Ever wondered whos money they might be spending ?

ukmike

Ever wondered whos money they might be spending ?

Their own?