Decrease in pension values highlights property as the best investment?

Discussion in 'General Property Investment Discussion' started by KGeeson, Jan 21, 2016.

  1. KGeeson

    KGeeson Property Forum Staff Forum Partner

    Yesterday's news said that economic problems in Asian markets and continual decreases in oil prices, are causing pensions values to drop. It's ironic that society has always thought pensions to be the safest and most solid form of investment for retirement (with property being seen as a more 'risky' strategy by my parents generation), but here we are facing a reality that those with property investments are probably the best placed to enjoy a more predictable, fruitful retirement.

    Do you think these latest economic problems will push more people towards the world of property investment?
  2. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

    I think it is highly likely. With the recent pension issues over the last few years people now probably realise they can rely on their pensions in the same way they used to be able to...

    Property is (relatively) easy to buy, manage and make a living out of if you invest in your education first and his minimise your mistakes.

    I have never relied on anyone (or company) for my pension as I like certainty and a controllable future (and asset) which property gives me as a pension.
  3. KGeeson

    KGeeson Property Forum Staff Forum Partner

    This is even more likely now following yesterdays news... that pension ages for women are going up, so those that have planned for retirement (and were expecting a state pension) are now really struggling because they haven't got enough money coming in - one was even considering busking! Not a great advert for pensions to generations in their 20s and 30s!
  4. nmb

    nmb Well-Known Member

    I totally agree that property is now seen by many as the modern day pension fund allowing them to save for the future. While recent fluctuations in world stock markets have had an impact upon pension fund valuations the real problems can be traced back to Gordon Brown's pension tax raid back in 1997.

    Pension funds now contribute an extra £10 billion per year compared to the situation pre-1997. While the annual tax received from pension funds is draining investment from the markets it is the cumulative effect of not having this additional money to invest year on year for potentially 40 years which is hitting people hardest. It is not difficult to see why final salary schemes are extremely rare today.

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