Property investment will make more money than a workplace pension, according to a new study.
Half of retirement savers are convinced investing in buy to let or other property would make them better off than their employer’s pension, says the Office of National Statistics.
And the number who prefer to property to a pension is increasing – from 40% in 2010-11 to 49% in the latest Wealth and Assets Survey in 2016-17.
At the same time, confidence in employer pensions is falling, from 24% in 2010-11, 26% in 2012-13 down to 22% in 2016-17.
“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,” said the ONS report.
Nevertheless, workplace or personal pensions are the second most popular source of retirement income behind the state pension.
Savings and investments, downsizing and banking on an inheritance made up the rest of the top five retirement income sources.
The research also looked at when workers intend to retire.
“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.”
Most expect to spend between 20 and 24 years in retirement.