More than two thirds (68%) of Britons are no longer relying on their pension to finance their future, a new report reveals today.
Over a quarter of people (26%) have given up on their pensions and one in four say they will never invest in a pension fund. Of those that do contribute the amount is woefully low and would not provide an adequate income at retirement. Just over half (53%) invest less than GBP100 a month, a quarter (24%) under GBP200. Only 15% invest GBP200 or more.
Property investment specialists, The Inside Track Group’s, a UK property investment group, found in its study, “Investing In Your Future,” that one in five (21%) think they have already invested enough for their retirement. And more than two thirds (68%) are hoping the Government pension will provide them with the financial security they need when they retire.
“The lack of faith in private pension funds means that many people are looking to alternative ways to invest their money for their retirement – yet they lack the confidence and know-how to make informed decisions,” said Anthony McKay, COO of Inside Track Group. “As a result, people are simply putting their heads in the sand – and doing nothing. It’s remarkable, given all the recent publicity about pensions, that so many people still think the Government pension will be enough to live on in their old age.”
Over two thirds see property investment as having a role to play in planning their retirement portfolios. 51% think that investing in UK property would provide them with an acceptable income to live comfortably during their retirement years. 22% preferred International property compared to 18% who thought stocks and shares would provide the best return.
“It’s really not surprising that so many people now see property as an investment class in the same way they do the stock market,” McKay added. “The FTSE 100 grew by 16% last year, yet the stock market is still 10% below its level in 1999, while house prices have more than doubled in the same period.”