LONDON, June 11, 2010 /PRNewswire-FirstCall/ --
- 'Don't bet all Your Financial Futures on Property' Warn Parents
Recession-weary parents are warning their children not to pin all their financial hopes on property - they are now urging them to climb the pensions ladder too.
With increases to capital gains tax looking increasingly likely, this could significantly impact on people using housing as an investment vehicle. The decision due in the Emergency Budget on 22nd June is likely to add further pressure to people relying solely on property to fund their retirement.
According to new research from Aviva, almost half (47%) say making sure their child saves into a pension is a key priority - a third (36%) would even help their kids kick start pension pots if they could.
Post economic downturn, three quarters (76%) say relying solely on property to fund retirement is too risky, while over half (54%) believe the UK is too obsessed with getting on the property ladder.
The Aviva 'Pensions Ladder' report reveals the majority (88%) of parents are worried about their child's financial futures, with seven in ten (69%) concerned there will be no state pension by the time they reach retirement. Others worry their children will:
- Have to work past retirement age (60%) - Be unable to afford to pay their bills when they stop working (45%) - Suffer health problems as a result of working longer (29%) - Have to take a second job to pay for their retirement (27%) - Sacrifice pension payments to get on the property ladder (22%)
Now, they are warning children not to repeat their own money mistakes with 11% saying they regret investing only in property.
Property expert Sofie Allsopp, who reviewed the research for Aviva, said: "Bricks and mortar are a good investment but the recession has served us with a painful wake up call that property values can go down as well as up.
"Hoping property prices will be on the up by the time you retire is too big a gamble to take with your financial future - parents are right to urge kids to climb both the pensions ladder and property ladder."
Aviva surveyed 1,000 UK homeowners*, of whom over half had teenage children - one in five (19%) admitted they have no idea how they will fund their retirement, with this figure rising to 26% amongst women.
Four in ten (40%) claim the economic downturn has prompted them to think about investing into a pension.
Paul Goodwin, head of pensions at Aviva said: "We want to help people do everything they can to afford the lifestyle they would like in retirement. All too often people put off saving for the future, but individuals really need to make sure that they're doing something about it today.
"Relying solely on property is a risk and it's far more sensible to spread your savings for the future in both your home and a pension plan."
Notes to Editors
*Aviva surveyed 1,000 UK homeowners via Redshift Research in April 2010 - 520 of the respondents were parents of teenage children.
About Aviva - Aviva is the world's fifth largest* insurance group, serving 53 million customers across Europe, North America and Asia Pacific - Aviva's main business activities are long-term savings, fund management and general insurance, with worldwide total sales of GBP45.1 billion and funds under management of GBP379 billion at 31 December 2009 - We are the largest insurance services provider in the UK and one of the leading providers of life and pensions products in Europe - Aviva's life and pensions business in the UK has a total market share of 10.3% and a leading position in its key markets of savings, protection and annuities. - The Aviva media centre at http://www.aviva.com/media includes images, company and product information and a news release archive - For broadcast-standard video, please visit http://www.aviva.com/media/video/