Personal Pension  

NFU Mutual pitches ‘Help to Buy Pension’

NFU Mutual pitches ‘Help to Buy Pension’

NFU Mutual has pitched the idea of a ‘Help to Buy Pension’ to assist struggling first-time buyers with the deposit needed to get on the property ladder.

The insurer commissioned ICM to interview a random sample of 2,051 adults earlier this month, finding that a quarter of would invest more into a pension if they could access a lump sum before they turn 55.

Of those who would invest more, one in six said they would be inclined to use it as a deposit on a house.

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This increases to a third when talking to 18 to 24-year-olds.

Already proving very popular among first-time buyers in Canada, who can borrow limited amounts from their pension to help them get on the property ladder, NFU Mutual’s research showed early access to some of their retirement savings would encourage more to start saving into pensions.

Sean McCann, Chartered financial planner at NFU Mutual, said: “We’ve already had Help to Buy mortgages and Help to Buy Isas, so a Help to Buy pension isn’t as unlikely as it may sound.

“Borrowing money from your pension to help people buy their first home is already part of the savings culture in Canada and our research suggests it could prove popular here too.

“If the chancellor is looking to encourage people to save more for their retirement this could be an option.”

He added that while getting on the property ladder is more of a priority for young people, pension savings may not start in earnest for some until they’re well into their 30s.

He said: “That may mean they work for much longer or retire with a much lower income than they had hoped.”

peter.walker@ft.com