Banking on your property for your retirement may not be the best bet

Standard Life has conducted extensive analysis of the UK property market to calculate how much retirement income downsizing your main home could generate.  The conclusion - don't bank on your home to fund your retirement dreams.

Andrew Tully, Senior Pensions Policy Manager, Standard Life commented: "People pinning their retirement dreams on downsizing their property will be in for a shock.  A combination of a fall in house prices and annuity rates has dealt a double blow to many, with the average pension pot from downsizing only providing £43.50 a week income.  Banking on downsizing to generate sufficient income is a potential retirement disaster unless you have also made provision elsewhere."

Tully continued: "Our recent research shows many people are still pinning their hopes on using property to generate their retirement income, favouring this asset class over savings accounts and pensions.  However, our analysis shows many people need a reality check to get their long-term financial planning back on track.  The old adage of not putting all your eggs in one basket has never been more appropriate."