Jonathan Davis Wealth Management highlights pensions calculator issue

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Jonathan Davis Wealth Management highlights pensions calculator issue

Mon 15th Nov 2010

Consumers should not purchase a property as an alternative to investing in a pension, according to an expert from Jonathan Davis Wealth Management.

Jonathan Davis, economist and wealth manager at the financial advice firm, explained that people have pursued this strategy for years.

In his opinion, it was a fairly effective way of generating retirement income until about 2007, when anyone heavily exposed to property was left "severely disappointed".

"Going forward, investing in property will not be an alternative to a hugely tax-efficient savings scheme called a pension," Mr Davis said.

He noted how people have got themselves into "vast" amounts of debt in order to buy a house - either to live in or rent out the property.

Last week, research by Laing & Buisson indicated 20,000 pensioners were forced to sell their homes in order to pay for healthcare expenses over the past year.

The report showed about 100,000 retirees have been in this situation over the last five years.

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