Our research has found that the average person’s property is worth six times more than the value of their pension – £250,000 compared with £37,500 (excluding those with defined benefit pensions).
Owning a home is an important aspiration for most of us. But it cannot be the be-all and end-all of personal financial planning, particularly as a property cannot always be easily sold to raise cash when needed.
We think that abolishing stamp duty on shares could be a fair and impactful policy, with wider economic benefits.
It would benefit all of us wanting to invest in UK companies and UK-domiciled investment trusts and help to encourage a much-needed national culture of share ownership.
It could also help with the UK’s dismal productivity performance, by directing savings to productive uses in the real economy.
And it’s fair because it helps those even with modest means – you can invest with most investment platforms from £250, or £25 per month, rather than the tens of thousands needed for a deposit on a home.
It’s a step towards democratising finance.
It is in policymakers’ best interests to address our property-pensions imbalance – because ultimately it will be their job to figure out how we support the millions who are heading for a difficult retirement.