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More retirement savers relying in property rather than pensions, according to new figures.
The number of people relying on property to help ease their retirement finances is increasing year-on-year – up to 13% of all non-retired adults.
Reliance on property includes replacing pensions with buy to let rentals as well as relying on releasing equity from a home someone lives in their later years.
The study, by investment firm Baring Asset Management, revealed that although more than one in eight people say their property is their pension, the trend is moving upwards.
In 2010, the number was 12% – rising from 9% in 2009.
The findings also showed women depend more on money from property than men, with 14% confessing they would fund their retirement from their property – up from 9% in 2010.
Meanwhile 12% of men agreed with women – mainly because they have better pension provision.
Worryingly, one in six (16%) of over 65s who still work regard their property as their pension.
In general, Barings also discovered around 13.6 million adults do not have a pension – including 1.4 million over 55s. About 19.3 million have a workplace pension – most are final salary schemes with defined contribution plans making up around a third of the number.
Marino Valensise, Barings chief investment officer said: “Having such a large number of people without any form of pension provision is very worrying. It is highly likely that for those approaching retirement age, continuing to work indefinitely will be mandatory given they have no other income streams.
“At the same time, it is concerning to learn that only half of people in their late twenties and early thirties are contributing into a pension scheme. Kick starting a pension around this time is absolutely paramount given the impact it has on the end sum. Investing into a pension little and often is a much better approach than not at all.”
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