Investors expect a property pension to make them the most money for retirement – but do not expect their investment to provide and income when they stop working.
Not only is property considered the second safest way to save for retirement, but more than twice as many believe property will generate more money than any other form of saving or investment, according to data from the Office of National Statistics.
The ONS has looked at retirement wealth to the end of December 2016 and found most people believe workplace pensions are a financial haven for their savings.
While 38% of over 40s plumped for a pension with their employer, property was in second place with 29% of investors.
But the response when asked which investment was likely to generate the best return, property topped the list with 49% of the vote, leaving workplace pensions second with 20%. The rest was split between personal pensions, savings, ISAs and other investments.
Property was not rated as an income provider in retirement without a place in the top five investments.
“Since July 2010 and continuing to December 2016, the percentage of people identifying property as making the most of their money has increased, which may reflect a growing confidence in property prices over this period,” said an ONS spokesman.
“In contrast, the popularity of ISAs and savings accounts has been decreasing, possibly reflecting low interest rates over this period affecting people’s attitudes towards these types of investments.
“The state pension has been the top retirement income option consistently since July 2010 with a small increase in the number of people giving this as the top option in December 2016 (86%) compared with previous periods (81% or 82%),” says the ONS.
“The next most popular option was occupational or personal pensions with 68% of respondents in July 2016 to December 2016 giving this option as a source of money for their retirement.”