More than 80% of IFAs say clients use alternatives to pensions in retirement planning, according to a report by financial services publisher Tax Briefs.
The Pensions Report 2007, published next Tuesday, shows consumers use vehicles such as property, ISAs and insured investment bonds for long-term savings.
Malcolm Small, chairman of The Pensions Report, says: “[Consumers] appear to be voting with their feet and walking away from pensions as a vehicle for retirement saving.
“It has become clear that consumers are, for a range of reasons, completely disengaged from pensions as a whole, whether occupational or personal. They simply don’t trust anything they are told about them, whether by government, employers or advisers.”
The report also shows 63% of IFAs have seen an increasing trend in clients seeking to control their own pensions through self-investment. It reveals SIPP business has grown rapidly, at the expense of personal pensions and stakeholder.
More than 20% of advisers surveyed expect SIPPs to make up 60% to 100% of their individual pensions business in five years.
Today figures from Baring Asset Management show more than three million people rely on property investments to fund their retirement.
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