Following on from the previous article, one thing not to rely on to supplement your pension savings is money tied up in property.
Whilst property is a good long-term investment in most cases, you still need to be aware of the risks of holding such a direct investment. Unlike other investments, your money really is tied up and is not easily accessible – not ideal in emergency situations. In addition to this and in light of Brexit, nobody knows how the housing market will react when we really get into the process of leaving the EU. Having precious retirement money trapped in property may prove fatal if the housing markets are negatively affected to a large extent.
Whilst you could downsize to free up some money, taking into account fees etc. it is difficult to generate enough equity to make this worthwhile for some. Also, moving to a smaller home may not be what you want in retirement, especially as you will probably be spending more time at home. So the message here is to really focus on your pension, and the benefits and increased freedom and flexibility you have if you avoid using property as a pension alternative.