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Loss of faith in homes for pension pot
3 November 2008 15:34
Many people in the UK have now lost faith in their homes providing them funds to seem them through retirement.
That's according to an investigation by the Alliance Trust, which has discovered that less than a third of Britons now believe their property will be a top contributor to their retirement pot.
This represents a significant decrease over last year, when 43 per cent saw their home as a primary source of financing during their twilight years.
Steve Latto, pensions development manager at Alliance Trust, said that the economic changes experienced over the past year highlighted the importance of careful planning for retirement.
He added that people did not always realised that there were many different ways to plan for your later years, such as ISAs, which can be transferred into a pension fund later on.
A new scheme announced by AXA last week aims to combat the effect of inflation on pension funds, by automatically increase the amount saved into them each year.
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