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News: Brits pick property over pensions

Mon, 21 May 07

Britons are losing faith in pension funds, preferring to invest in property, new research shows...

The majority of UK residents questioned said they worry their personal or occupational pension will fold and take their money with it, two people in five are also worried whether their pension fund will offer enough cash for them to live on in retirement, reports ukfinances.co.uk.

By contrast, recent performance in house prices means ever more Britons are putting their faith as well as their cash in bricks and mortar.

One adult in five has already invested in property to help fund their retirement, with another 30 per cent looking to do so in the future.

Overall, three quarters of UK adults believe property is a better investment than a pension fund, while one retired Briton in ten already has a property helping them fund their lifestyle.

"Investing in a property allows you to put money into something you can see, rather than paying it into a pension scheme wondering if you will see it again," said Brett Wood, managing director of YourPropertyClub.com, the company that conducted the research.

However, fears over pensions and the high price of property mean 42 per cent of Britons have not made any plans to fund their retirement, with more than one in four 50 to 60-year-olds having no money set aside.

Two UK residents in five put off pension plans as retirement 'seems ages away', while 22 per cent plan to earn more later on.

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