9th March 2016
Over a third of adults aged 18-34 would invest more in a pension if they had the flexibility to access some of their money early and use it for a home deposit.
Struggling house buyers desperate to get on the property ladder could benefit from a ‘Help to Buy Pension’ insurer NFU Mutual has said.
The insurer says that a quarter of adults would invest more into a pension if they could access a lump sum before they turn 55. Of those who would invest more, 1 in 6 said they would be inclined to use it as a deposit on a house increasing to a third when talking to 18-24 year olds.
The insurer says that this system has proved very popular among first time buyers in Canada who can borrow limited amounts from their pension to help them get on the property ladder.
Sean McCann, Chartered Financial Planner at NFU Mutual, said: “We’ve already had Help to Buy mortgages and Help to Buy ISAs… a Help to Buy pension isn’t as unlikely as it may sound. Borrowing money from your pension to help people buy their first home is already part of the savings culture in Canada and our research suggests it could prove popular here too. If the Chancellor is looking to encourage people to save more for their retirement this could be an option.
“At the moment, getting on the property ladder is more of a priority for young people, pension savings may not start in earnest for some until they’re well into their 30s. That may mean they work for much longer or retire with a much lower income than they had hoped.”
*ICM interviewed a random sample of 2051 adults aged 18+ via online between 4th – 6tth March 2016. Surveys were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules.