What does the Bank of England think?
Property investment is a safer bet for retirement than a pension, according to the Bank of England’s chief economist.
Andy Haldane believes that pensions are too complicated, while continually increasing property prices make for a lucrative investment.
Property ‘almost certainly’ a better investment?
With many reliant on a pension at the end of their working life, this statement may come as a surprise. Haldane agreed with the general view that the better investment “ought to be a pension” but went on to say that it’s “almost certainly property.”
However, the comments should be taken with a pinch of salt. Haldane’s salary at the Bank of England is around £180,000 – way above the national average – while his pension is set to be over £80,000 when he retires.
The economist, who owns two properties, has been described as ‘irresponsible’ by former pensions minister Ros Altmann.