IMC

,

33% of Gen Z Rely on Property for Retirement: Is this the right approach?

The future of retirement planning seems to be taking a unique turn. A recent study revealed a surprising trend: a significant portion (33%) of Gen Z individuals view property ownership as their primary retirement strategy [1]. This stands in stark contrast to previous generations who leaned more towards traditional pensions.

This inclination contrasts markedly with preceding generations; notably, Baby Boomers show a stronger preference for pensions (42%) over property (18%), and a similar trend is observed among Millennials, with a more significant number leaning towards pensions (36%) over property (22%).

But is relying solely on property for retirement a wise decision for Gen Z? Let’s delve into the potential benefits and drawbacks of this approach.

The Allure of Property:

The Flip Side of the Coin:

So, Should Gen Z Go All-In on Property?

There’s no one-size-fits-all answer. While property ownership can be a valuable component of a retirement plan, relying solely on it may be risky. Here are some key considerations:

The Final Word

While property ownership can be a part of a well-rounded retirement strategy for Gen Z, it’s crucial to approach it cautiously and with a diversified investment plan. Consulting a financial advisor can help you develop a personalised approach that aligns with your unique goals and risk tolerance.

Ready to build a secure future? Explore additional resources and investment strategies (link in bio)!

Source data:

[1] Boxclever conducted research among 6,350 UK adults for Standard Life. Fieldwork was conducted 26 July–9 August 2023. Data was weighted post-fieldwork to ensure the data remained nationally representative on key demographics.

Disclaimer:

THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).

THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.

YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.

USING EQUITY IN YOUR HOME WILL AFFECT THE AMOUNT YOU ARE ABLE TO LEAVE AS INHERITANCE. ANY MEANS TESTED STATE BENEFITS (BOTH CURRENT AMD FUTURE) MAY BE AFFECTED BY ANY EQUITY RELEASED. EQUITY RELEASE IS EITHER A LIFETIME MORTGAGE OR HOME REVERSION SCHEME.

Back to posts

Stay in touch

Get the latest news & updates from IMC and the financial sector

"*" indicates required fields

Stamp Duty Calculator

Mortgage Application

First Time Buyer

Mortgage Application

Buying A Home

Mortgage Application

Buy To Let Purchase

Mortgage Application

Remortgage

Mortgage Application

Buy To Let Remortgage