|
Five per cent
of the UK adult population have taken the decision to review their
pension arrangements in the last 12 months as a result of falling
property prices, according to Baring Asset Management.
The research shows that just 878,000 people in Britain now plan
to use property to fund all of their retirement, compared with 3.2million
in April last year. 16 per cent are now planning on using property
to fund all or part of their retirement, compared with 28 per cent
last year, and 1.2million people said that they are now reviewing
their pension investments more carefully and looking at other options.
Barings’ research also reveals that an estimated 12.2million
of UK adults are not currently making any provision for retirement,
with young people in particular failing to think about their financial
future, as more than one in three of 25 to 34 year olds do not have
any kind of pension plan in place.
Perhaps more worrying is the fact that 22 per cent of over 55 year
olds were found not to have a pension in place for their imminent
retirement, and overall, 39 per cent of women and 30 per cent of
men do not have a pension.
Marino Valensise, CIO at Barings, commented: “It’s great
to see that less people are relying on property to fund their retirement,
but it’s still remarkable that so many people are failing
to plan for their retirement at all. It’s crucial that we
plan for our old age and that our investments are diversified amongst
a number of different asset classes.
“The longer you have before retirement, the more you should
be placing in assets which will be able to generate a higher level
of return,” Valensise concluded.
-
Pensions Age July 2008
|
