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Property investment is the most attractive retirement policy

2nd December 2005 | back to article listings BACK    print this article PRINT

It has been revealed that 44 per cent of Britons expect property investment to provide the best return for retirement.

Published in the same week that Lord Turner made proposals for the state pension age to rise to 67 and possibly to 69 by 2050, the research conducted by Instant Access Properties (IAP) has indicated that Britons have little faith in the pensions system and that property investment is now more popular than ever.

Almost half of the 2,000 people polled believe that the UK property market provides the best return on investment for retirement, compared to the 22 per cent who think that a private pension is the best policy.

A significant finding was that even those contributing to a pension fund were putting aside extremely small amounts of money with 57 per cent making payments of less than £100 a month. Furthermore, 47 per cent had failed to make any provisions for retirement reflecting a general disillusionment with pension policies.

It was also revealed that 15 per cent of those surveyed thought that international property would provide a good return, which points towards the growing interest in property investment abroad as the overseas market has often outperformed UK property in recent years.

Tony McKay, chief operating officer of IAP said: "It's not surprising that so many people see property as providing the highest return on investment over the medium to long term, given that over the last 30 years UK house prices have risen, on average, by more than nine per cent year on year."

The research also found that only 11 per cent had a good understanding of Self Invested Personal Pensions (Sipps), with around 30 per cent claiming that they had never heard of them.

Mr McKay commented: "It is increasingly clear that the A Day changes to Sipps will only benefit a relatively small number of Britons who have already accumulated sizeable pension funds. However, this research does suggest that people will be keen on property investment for retirement planning even if they are unable to do so through a pension wrapper," he said.

The statistics have arrived alongside a report from Halifax which identifies that the average cost of a home has risen by 1.2 per cent during November on the back of increased market activity. Whether in the UK or mainland Europe, the signs are that people are beginning to turn to property investment as a viable and profitable alternative to the traditional pension.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/2363.html. Alternatively, please see our full press release archive.

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