Should first-time buyers be able to access their pension savings in order to get on the property ladder? Pension industry experts say no, despite pensions minister Guy Opperman this month floating the idea of a product allowing savers to use their pensions to help finance a deposit on a first home.
Opperman points to countries such as New Zealand and the US, where retirement savings can be used in this way in certain circumstances. The idea has superficial appeal: young savers are often frustrated that despite having several thousand pounds in their pension funds, they can’t raise the money for a deposit.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Opperman also appears to be unaware of lifetime individual savings accounts (Lisas), the scheme introduced in April 2017. These enable savers to put money by, with an additional bonus from the government, that has to be used either for a house purchase or as pension savings. Lisas therefore combine saving for a property and for old age – but have so far proved relatively unpopular.
-
Defeat into victory: the key to Simon Wolfson's successOpinion Next CEO Simon Wolfson claims he owes his success to a book on military strategy in World War II. What lessons does it hold, and how did he apply them to Next?
-
Aircraft leasing companies can lift investors' portfoliosThe aircraft leasing business is a safer way to cash in on air travel and its booming demand. David Prosser explains how it works and how to access it
-
'Rachel Reeves’s tax rise will crash the economy'Opinion Rachel Reeves will be the first chancellor since Denis Healey in the 1970s to raise income tax. It will only push Britain into recession, says Matthew Lynn
-
Venture capital trusts that offer growth, income and tax reliefOpinion Alex Davies, founder of high-net-worth investment service Wealth Club, picks three venture capital trusts where he'd put his money
-
'How I brought MoneyWeek to the masses'Launching MoneyWeek gave ordinary investors information – and hence power, says Merryn Somerset Webb
-
'It’s time for Rachel Reeves to secure her legacy'Opinion Rachel Reeves has been a dreadful chancellor, and it's hard to see her remaining in office for another whole year. She could at least depart with some dignity
-
Klarna leads a financial revolution – should investors buy?Klarna has ambitions to rewire the global payments system and has huge growth potential
-
Are venture-capital trusts worth investing in?Venture-capital trusts are a tax-efficient way to invest in early-stage companies. But are they worth the risk?
-
Can Rachel Reeves save the City?Opinion Chancellor Rachel Reeves is mulling a tax cut, which would be welcome – but it’s nowhere near enough, says Matthew Lynn
-
'Gen Z is facing an AI jobs bloodbath'Opinion It has always been tough to get your first job, but this year, it's proving tougher than ever. AI is to blame, says Matthew Lynn
