Retiring Britons 'put eggs in one basket'
02 October 2007
Over three million Britons are relying solely on property to fund their retirement, new research shows.
According to Baring Asset Management, over a third of UK adults (33 per cent) are not making any provision for their retirement, relying solely on the assets of their home to get them through old age.
Some ten per cent of 35 to 44-year-olds are planning to retire using the income they receive from their home, compared with eight per cent of 45-year-olds and just six per cent of 25 to 34-year-olds.
A worrying 22 per cent of over 55-year-olds do not currently have a pension in place for their retirement.
Barings' chief information officer, Marino Valensise, advised people to plan more carefully for their retirement and warned against leaving oneself open to the fluctuations of the property market.
"Too many people are relying on property to fund their retirement. It's crucial that we plan for our old age and that our investments are diversified amongst a number of different asset classes - not just property," she said.
"Placing all your eggs in one basket in this manner really does leave you overly exposed to house price movements. Your pension should be invested in diversified assets that are in line with your age, lifestyle commitments and number of years to retirement."
