Residents at retirement village put their faith in bricks and mortar

The cash made from investment in bricks and mortar is set to be the major source of retirement funds for nearly half the population, according to new research.

As the reliance on company pensions to provide an income during retirement slips, more people are looking to the equity in their property – sometimes built up over decades – to fund their retirement lifestyle.

Figures gathered by the Alliance Trust show 43 per cent of adults in this country expect property to be a top contributor to their income in retirement – an increase from just 31 per cent last year. The belief that company pension schemes will fund them in later life has slipped back from 40 per cent to 36 per cent.

And, according to experts in the retirement field, those expectations are already coming to fruition.

Sarah Burgess is the sales and marketing director for Retirement Villages, a major player in the development of lifestyle villages for the over 60s including Roseland Parc, in Tregony, near Truro in Cornwall.

“Many of the people who have moved into Roseland Parc have downsized from family homes,” explained Sarah. “In doing so they have released equity built up over many years enabling them to buy a smaller property outright as well as giving them a nest egg to fund their retirement. For some that money has enabled them to buy a second property abroad, to take regular holidays or to help out family.

“Others have invested the money they made on selling their bigger property to ensure they have a regular income during their retirement.

“People no longer rely on pension funds like they used to and property is currently seen as the best long-term investment. People reaching retirement now who bought their first home in the late 60s or early 70s will have seen a massive rise in the value of their property which opens up lots of financial options for them if they choose to release that equity.”

Other sources of income identified by people in the survey include a personal pension, inheritance or windfall, a partner, stockmarket investment and business ventures.

Properties at Roseland Parc are now available priced from £169,000.

For more information telephone 01872 530888 or visit www.retirementvillages.co.uk

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