A quarter of Brits think property investment is the safest way to fund retirement
Up to 25% of Brits think property investment is the most effective way to financially support retirement.
A quarter of Brits say they think property investment is the safest way to fund retirement. Data collected from April 2018 to March 2020, released by the Office for National Statistics, show that 25% of Brits favour property investment. This is in comparison to any other method of providing financial support when working is no longer an option.
Although relatively high, this figure is actually a 4% drop from the figures collected last in April of 2018. These figures stood at 29%. The 35-45-year-old category rose to 28% but dropped to 21% in the 16-24-year-old category.
These figures also show that the most likely areas to prioritise property investment are the North East of England and those in London.
The self-employed are the most likely group to invest in property ahead of retirement. 38% of those self-employed said they would consider property investment. 19% of people self-employed preferred a pension, 10% prefer to use an ISA and 5% prefer to use savings accounts. So, property investment is the clear top option for this category.
A huge 43% of respondents said that property investment was likely to yield the most money. Upon asking the self employed what would make the most money 53% said that property would prove the most beneficial financially. This is compared to 42% of those employed and 39% of students.
23% believe that this money will come from downsizing. 10% cited that money would be generated from selling or renting out another property.
Helen Morrissey, pension specialist at Royal London, said that the self-employed seeing property as key to retirement is not necessarily such a good thing. If they are solely reliant on property to provide for their retirement, they are stuck in a hard place if property prices drop significantly.