uSwitch.com: Property price slump could leave pensioners feeling the pinch

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uSwitch.com: Property price slump could leave pensioners feeling the pinch

Mon 1st Dec 2008

Research released by uSwitch.com has shown that falling property prices could leave many people short on funds when they retire.

The price comparison site found that 1.7 million pensioners are relying on property investments to tide them through their retirement, but as property prices have fallen by an average of 14.6 per cent in the last 12 months, many of them could be left struggling.

As successive generations approach retirement age the problem could become even more pronounced - over a quarter of 55 to 64-year-olds and nearly half of 25 to 34-year-olds say they are counting on their property investments to fund their old age.

Ann Robinson, director of consumer policy at uSwitch.com, said "Consumers are faced with falling house prices coupled with a stock market crash and low savings rates - these factors combined seem to cut off every possible lifeline to fund a happy retirement."

A recent study by Prudential revealed that people are already paying less in pension contributions in an effort to save money in the short-term.

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