Investing in property has always been considered a sound move, but new research from the Office for National Statistics (ONS) reveals that investors have the most confidence in a property pension to generate the best return.
The figures reveal that property is considered the second safest way to save for retirement, plus more than twice as many believe it will generate more money than any other form of saving or investment.
However, they do not expect their investment to provide an income when they stop working.
The ONS found that most people believe workplace pensions to be a financial haven for their savings, with 38% of over 40s choosing a workplace pension with their employer as their method of saving for retirement. Property came second with 29% of insurers.
But when asked which investment was likely to generate the best return, property soared to the top of the list with 49% of the vote, compared with just 20% having confidence in workplace pensions.
The rest was split between personal pensions, savings, ISAs and other investments.
The percentage of people identifying property as their best return on investment increased between July 2010 and December 2016, said an ONS spokesperson.
“In contrast, the popularity of ISAs and savings accounts has been decreasing, possibly reflecting low interest rates over this period affecting people’s attitudes towards these types of investments.”
For a free review of your pension arrangements, contact the experts at Hine Financial Services on 0161 438 0000.