Savers favour property investment over pensions
Property investment is regarded as more profitable than workplace pensions among savers, according to an Office for National Statistics (ONS) report.
Respondents were asked to select the savings option they thought would make the most of their money, and 44 per cent selected property, against 25 per cent selecting a workplace pension.
The survey’s respondents appreciated the security of a workplace pension, with 41 per cent selecting this as the most secure option, against 28 per cent for property, 11 per cent for a personal pension and 10 per cent choosing an Isa.
Workplace pensions were not seen as the most profitable option though, despite the fact they benefit from employer contributions and tax relief.
The preference for property investment could be a reflection on the significant rise in house prices over the last few years.
The figures also suggest more people are struggling to put money into their pension for financial reasons, with 50 per cent of people failing to contribute towards a pension as a result of low income, not working or still being in education. This figure stood at just 38 per cent from July 2010 to July 2012.
Under auto-enrolment rules, workers are automatically included in a company pension scheme, but can opt out if they wish. Those who do not contribute themselves lose out on additional contributions from their employer and tax relief from the government.
More positively, 52 per cent were either ‘fairly’ or ‘very’ confident their retirement income would provide the standard of living they were hoping for, and increase from 41 per cent in 2010 through 2012.
Almost half (49 per cent) said they understood enough about pensions to decide what to do with their retirement savings, up from 47 per cent in 2012 to 2014 and 43 per cent in 2010 to 2012.