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Babyboomers reliant on property for retirement

Babyboomers reliant on property for retirement

Category: Pensions

Updated: 09/04/2010
First Published: 09/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Thousands of the UK's babyboomers are over reliant on property to fund their retirement, while many are looking to retire overseas.

Almost half of the Britons aged 45 to 65 plan to rely on some form of property income to fund their life after work, research conducted by AXA has revealed.

A quarter expect part of their retirement income to come from downsizing their property, despite figures earlier in the week showing that the weekly amount raised by doing so has fallen by 20 per cent in the last year.

Almost one in ten expect to free up cash using equity release, while the same number expect to use rental or other income from a second home .

Five per cent of babyboomers expect the sale of their second home to help finance their retirement.

"The property market could witness a glut of properties coming onto the market in the next 10 to 15 years, corresponding with a massive hunt for cheaper rural houses," said David Thompson, managing director of wealth investments and distribution at AXA.

"This will have a significant impact on the UK housing market."

The research also uncovered a trend of lifestyle changes in retirement, with around one in three respondents saying they planned on moving home, the majority of which said they would seek a house in the countryside, by the sea or abroad.

For all the talk of the recession affecting consumers' plans, almost three quarters (73 per cent) said they had no plans to delay their retirement because of the downturn.

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