Go-Grey Downsizing

In the last 10 years, opinion in the UK has shifted significantly towards the positive perception of downsizing to release equity.

In the last 10 years, opinion in the UK has shifted significantly towards the positive perception of downsizing to release equity, either to fund retirement or provide children a foothold on the housing ladder.

Whether this is due to the poor performance of pension funds, the withdrawal of final salary schemes or the general negative perceptions of the Financial Services Industry I cannot say.

However, what is immutable is the following:

“Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.”

—Benjamin Franklin,

With UK Inheritance Tax thresholds fixed for some time to come versus escalating asset values many baby boomer’s attention is now focussed on tax efficiency.
This presents a wonderful opportunity for the Financial Services Industry to innovate!

With nearly 80% of UK personal wealth held by the over 60’s, a tax efficient way to benefit from downsizing is needed now.

Simple Insurance wrapped investments could be useful if costs were moderated.

The concept of Lifetime ISA’s is also worth pursuing as proposed by theCentre of Policy Studies. However, without initiative from the Industry the opportunity will be lost.