Pension for property scheme revealed - Pensions - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Pension for property scheme revealed

Pension for property scheme revealed

Category: Pensions

Updated: 05/10/2012
First Published: 24/09/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The deputy Prime Minister Nick Clegg has claimed parents should use pension funds to help their children purchase their first home.

Under new plans, to rescue the ailing first-time buyer mortgage market, parents and grandparents will be able to donate up to 25% of their own pension pots to provide extra money for their offspring's deposits.

Speaking at the Liberal Democrat Conference in Brighton, Mr Clegg said that the initiative will provide another way for individuals to help the younger generation onto the property ladder.

"We've got thousands of young people who are desperate to get their feet on the first rung of the property ladder but deposits have doubled and the young people who are asking for help from family members to get a mortgage has doubled.

"The Government is going to do something which hasn't happened before. We are going to work out ways in which parents and grandparents who want to help their children and grandchildren buy a property of their own."

Raising funds for high deposit mortgages is the main hurdle facing thousands of first-time buyers, restricting them from entering the housing market.

Described as "half-baked", the initiative has been panned by pension experts who argue that the sole purpose of having a pension is to provide income during retirement, rather than bailing out cash-strapped relatives.

What Next?

Learn about your pension options

For help or a pension quote call TQ Invest:
0800 294 7203

Looking for a pension to help you save for your retirement? TQ Invest can help.

Find an old pension – contact the Pensions Tracing Service on 0845 600 2537

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Have you lost track of your pensions?

The changing nature of the jobs market means it’s highly likely that you’ve got more than one pension pot, but the question is, do you know where they all are? According to research from Aegon, many people don’t.

Grandparents missing out on pension protection

Grandparents who give up work to take care of their grandchildren could be missing out on valuable state pension rights. So, if you're a grandparent taking care of a little one, make sure you’re building up all of the pension that you deserve.

Setting goals could boost your pension pot by £30K

Setting goals can be the key to success in many areas of life, helping motivate you to achieve anything from career progression to building up that house deposit - and if you have goals set for retirement, you could boost your pension by £30,000.