Pensions have trumped property as the best store of money over the last 25 years, despite the housing market’s sharp rise, new research reveals.
Investing in pensions has paid £177,000 more than putting your money into the typical property over the last quarter of a century, says wealth manager Schroders.
It says £100,000 invested in the global stock market 25 years ago would now be worth at least £50,000 more than £100,000 spent on property in the most expensive region in the UK.
Investing in pensions has paid £177,000 more than putting your money into the average property over the last quarter of a century, says wealth manager Schroders
A property worth £100,000 25 years ago would be valued at an average of £454,000 today.
But a £100,000 investment in the global stock market would have swelled to around £631,000.
In London, where house prices are the highest in the UK, this investment would now be worth around £580,000, while in Scotland it would have grown to about £407,000.
The data does not take into account fees, tax savings for putting money into a pension or costs associated with buying and selling property.
The stock market would have earned you more than investing in property over a five, ten, 20 or 30-year period, Schroders says.
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