An increasing number of retirement savers believe investing in property will make them richer than putting money into a pension.
According to official figures, 49% of savers believe property is a better bet than an employer pension.
While the number who believe property investors will make the most money has steadily increased from 40% in 2010, those entrusting their cash to an employer pension is the best bet has waned over the same period.
After a rise from 24% to 26% between 2010 and 2012, the number favouring an employer pension has dropped to 22% in 2016-17, says the Office of National Statistics.
Retirees rely on state pension
“The percentage of people identifying property as making the most of their money has been increasing, which may reflect a growing confidence in property prices over this period. However, as with opinions on the best way to save for retirement, the popularity of ISAs and savings accounts has followed a decreasing trend,” says the ONS Wealth and Assets Survey.
The research also revealed the state pension is the most popular source of retirement income for 84% of people.
An employer or personal pension is next for 68%, followed by savings or investments (44%), downsizing (23%) and a future inheritance (22%).
The percentages for sources of retirement income have stayed broadly the same since 2010-11.
Other sections of the report look at attitudes to retiring.
51% confident they have enough retirement cash
“Most currently in work or not retired and intending to work in the future (59%) expected to retire between ages 65 and 69 years,” says the ONS.
“This has been the most commonly reported expected age of retirement since July 2010. There was a decline in the percentage of people expecting to retire between ages 60 and 64 years between July 2010 to June 2012 and July 2012 to June 2014, from 27% to 21%, accompanied by increases in the percentages expecting to retire in the older age groups. Since then, expectations have remained stable.”
The majority also expect to spend between 20 and 24 years in retirement, although 5% are hoping for a retirement of at least 35 years.
Only 46% of people are ‘fairly confident’ they have enough money for retirement, compared with 5% who are ‘very confident’, 39% ‘not very confident’ and 21% who are not confident at all.