Industry specialists disregard BoE Chief Economist’s recent comment that property investment is better than pensions.
Following his speech at the New City Agenda annual dinner in May this year, where he spoke out about the complexity of financial products, Bank of England (BoE) Chief Economist, Andy Haldane is now reportedly stating property is more effective for retirement funding than pensions.
He supports his view by saying that receding property stock levels that are behind on initial Government targets will boost house prices, making for sound investment.
Ros Altmann, former pensions minister, has reportedly said that Haldane’s current views are not in touch with the reality of the current state of the market.
Having a pension pot exceeding £3 million and minimal expertise as to how pensions function, Tom McPhail, Head of Retirement Policy at Hargreaves Lansdown allegedly says given these points that the Chief Economist is not in a position to dismiss the idea of retirement funding through pension savings.
McPhail continued by emphasising the advantages of pensions for many people within the UK, including tax reliefs and workplace pension schemes. He advises that pensions are also require less financial input to maintain at 0.75% annually, compared to properties which are estimated to cost up to 10% of their market value.
