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Pensions not expected to fund retirements

Pensions not expected to fund retirements

Category: Retirement

Updated: 05/10/2012
First Published: 08/08/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Nearly half of people in the UK do not expect to use their pension during retirement, with 17% believing that inheritance payouts will fund their senior years.

Research from Baring Asset Management has found that just 56% of those surveyed plan to fund their retirement with their pension, with many people anticipating cash, inheritance or property to form their retirement fund.

A growing number of people are investing in property with a view to live off the assets later in life. Compared to 26% last year, 29% see property as a better investment option than a pension.

Whilst the results suggest more people are choosing other investments over pensions, there is some concern that many are not making informed and effective plans for retirement.

Marino Valensise, chief investment officer at Barings, said:
"It is very surprising to see just how varied retirement funding sources have become for many people in the UK.

"While diversification is crucial to best-practice asset management, the suitability of some of these sources can be questioned, such as a reliance on inheritance. Overall, the most challenging finding is that nearly half of the adult UK population admits to not having a formal pension at all."

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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