Retirement savers rely on property rather than pensions

Monday, August 15, 2011

Retirement savers rely on property rather than pensions

Workers saving for their retirement are increasingly relying on property to provide them a nest egg for the future according to findings from Baring Asset Management.

One in eight working adults- up to 13% of the UK population- has invested in property rather than a traditional pension scheme. And this number has risen from 12% in 2010 and 9% in 2009.

In general, Barings also discovered around 13.6 million adults do not have any form of pension or investment – including 1.4 million over 55s.

While many of these property investments are being made in UK buy to let properties or in equity release schemes, there are also a large number of people looking overseas for investments. Emerging areas such as Croatia, Bulgaria and Brazil are proving popular with those looking for a cheap investment which looks set to produce a high return in coming years.

However, the company warned against savers investing completely in property. 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.”

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