People Rely Solely on Property to Fund Retirement
By |Published On: 22nd September 2014|

Home » Uncategorised » People Rely Solely on Property to Fund Retirement

People Rely Solely on Property to Fund Retirement

By |Published On: 22nd September 2014|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

A veteran member of an asset management company has stated that a worrying number of people are relying on their property investment to fund their retirement.

People Rely Solely on Property to Fund Retirement

People Rely Solely on Property to Fund Retirement 

Rod Aldridge of Barings Asset Management has warned that people planning on selling or renting their property to boost their pension fund are open to the trends of the ever-changing property market.

Mr Aldridge says that people must be aware of the dangers of using property to fund retirement. As a result, he has urged those planning to do so to invest in other assets that are not tied up in property.

A recent survey from Barings found that 7% of non-retirees have made plans to sell their existing property in order to boost funds for their retirement. In addition, the number of people who have plans to sell a property which does not serve as their main dwelling has increased from 13% in 2013 to 16% in 2014.[1]

Volatile

Mr Alridge said that the results of the survey were concerning. He stated: “Property can, of course, form part of a diversified investment portfolio, but this year’s research indicates that more people are investing in property as a retirement source and this could mean they are too concentrated in the asset class. Property prices can be volatile, so relying on your home to provide all your income to fund retirement is risky.”[1]

He continued: “Expecting to fund your retirement through the use of a volatile asset such as their own home or from other properties, such as buy-to-let, should be fully appreciated and understood.”

Aldridge believes: “Investing for your retirement is about long-term planning,” and “more emphasis needs to be put on how a lengthier retirement will be funded.”[1]

Despite the concern, the research from Barings found that people who have never planned to use property to boost their retirement fund rose from 35% to 52% during the past year.[1]

[1] http://www.carehome.co.uk/news/article.cfm/id/1565240/worrying-number-of-people-relying-exclusively-property-to-fund-retirement

 

 

 

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

Share this article:

Related Posts

Categories:

Looking for suitable
insurance for your
investment?
Check out our four
covers for landlords