Opperman exploring possibility of using pensions for house deposits ‘disappointing’

Pensions Minister, Guy Opperman's, suggestion that he is open to exploring ways for pensions to be used for house deposits has been described as “disappointing” by The People’s Pension (TPP).

Speaking during a webinar hosted by Prospect Magazine, Opperman suggested that he was open to considering ways in which people could borrow from their auto-enrolment pension savings to help fund a deposit on a house.

However, he caveated that the suggestion to use pensions for house deposits was not government policy and was not being considered by government officials.

The suggestion had been met with some criticism, with TPP director of policy, Phil Brown, labelling it as “disappointing".

“It’s disappointing to see that the government has not completely closed the door on a policy which would further inflate the bubble in the housing market, deplete young people’s retirement savings and transfer that money to older people selling property,” he stated.

"Pensions are about providing much-needed retirement income for workers, with international evidence suggesting that pension pots are never adequately replenished once they have been accessed early.”

Brown noted that roughly 1.5 per cent of assets are cashed out from pension pots annually in the USA, reducing savings on retirement by a quarter.

“The only answer to getting more people onto the property ladder is to provide much more affordable housing,” he concluded.

This story was originally published by our sister title, Pensions Age.

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.


Inside the world of high net worth lending
The mortgage market continues to evolve, and so too does the answer to the question: what is a high net worth individual in today’s market? In this episode of the Mortgage Insider podcast, host Phil Spencer is joined by Stephen Moroukian, Head of Product and Proposition for Real Estate Financing at Barclays Private Bank, and Islay Robinson, founder and CEO of Enness Global. Together, they explore what brokers really need to know when supporting high net worth individuals.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.