Consumers' faith in bricks and mortar to fund their retirement has grown dramatically over the past 12 months, according to research from Alliance Trust.
The study shows 43% expect property to form a top contribution to their income in retirement, compared to 31% last year. This is despite a cooling house market in most parts of Britain.
A total of 36% count company pension schemes as a major contributor to retirement, down from 40% last year.
Following company schemes, 28% expect personal pensions to factor in their retirement funding plans, up 2% since 2006.
Hyman Wolanski, head of pensions at Alliance Trust, says: “It is no surprise to see that people’s confidence in company schemes funding their retirement has taken a downturn. Over the last year we have seen a continuation of the trend of company pension schemes closing initially to new employees and then to existing employees.
“There has been a tremendous growth in house prices over the last decade but, as we see initial signs of the residential property market cooling down, it is important that people don’t rely solely on their home to fund their retirement. For those who want to invest their pension fund in property there are plenty of collective vehicles available for this purpose, including some that invest in residential property.
“The British have a love of property. You can touch it, relate to it and it’s booming, despite the problems. Residential property is at an all time high.
"A lot of people are not really on top of stock markets and shares and those sorts of investments. If you are in the financial world and have experience in those things, that’s fine but a lot of people don’t."
Earlier this month research from Baring Asset Management showed more than three million people, or 7%, rely on property investments to fund their retirement.
To comment on this story contact:
Tel: 020 7034 2679
E-mail: [email protected]
2019 Survey opens in June
'Necessary steps' taken
Penalty payments and enforcement policy
Fees as low as 0.04%
Client procurement costs ‘unsustainable’