15 October 2007
FOUR IN TEN BRITISH ADULTS EXPECT PROPERTY
TO CONTRIBUTE MOST TO THEIR RETIREMENT
Despite
indications of a cooling housing market in most parts of
In
contrast, Britain’s belief in company pension schemes to fund them in later
life has slipped back this year, from 40% to 36%, meaning property now tops the
list for our overall retirement expectations. There was, however, an increase
or no change in the expected contribution from all the other sources of income
in retirement.
|
Which three things do people most
expect to contribute to income in retirement *** |
2006 |
2007 |
Change |
|
Property |
31% |
43% |
Up |
|
Company pension |
40% |
36% |
Down |
|
Personal pension |
26% |
28% |
Up |
|
An inheritance or windfall |
17% |
18% |
Up |
|
Current partner or spouse |
18% |
18% |
- |
|
Stockmarket investment |
12% |
15% |
Up |
|
A future business venture |
5% |
7% |
Up |
|
A current business venture |
3% |
4% |
Up |
|
A future partner or spouse |
3% |
3% |
- |
The
survey showed that returns on direct stockmarket investments are increasingly
relied upon, with an increase from 12% in 2006 to 15% in 2007. It also showed
that 18% of people are hoping for an inheritance or a windfall to help them
fund their retirement, while 18% expect to rely on their current partner or
spouse.
Hyman Wolanski, Head of Pensions at Alliance Trust,
said:
“It is no surprise to see that people’s confidence in
company schemes funding their retirement has taken a downturn. Over the last
year we have seen a continuation of the trend of company pension schemes
closing initially to new employees and then to existing employees. There
has been a tremendous growth in house prices over the last decade but, as we
see initial signs of the residential property market cooling down, it is
important that people don’t rely solely on their home to fund their retirement.
For those who want to invest their pension fund in property there are plenty of
collective vehicles available for this purpose, including some that invest in
residential property.
People often don’t
appreciate that there are many financial products available to help them save
for their retirement. Saving into an ISA, for example, could be a good way to
kick start your retirement savings pot as it gives you much greater flexibility
than pension schemes. This is particularly important for younger people
and there are opportunities to transfer this money into a pension fund which
you can control later on in life. It is important that people take active steps to plan for their future
to give themselves a good chance of having a comfortable retirement.”
- ends -
Contacts
Alliance Trust
Lansons Communications Tel +44 (0)1382
306064
Tel +44 (0)20 7294 3605 / 3674 / 3681 Mobile 07745 783212
Email Email jane.holligan@alliancetrust.co.uk Web www.alliancetrusts.co.uk |
Notes to editors
* Figures based on YouGov Survey of 2,552
adults. Fieldwork was undertaken between 16th - 21st May 2007. The
survey was carried out online. The figures have been weighted and are
representative of all GB adults (aged 18+)
** Figures based on YouGov survey of 1986
adults. Fieldwork was undertaken between 9th – 13th June
2006. The survey was carried out online. The figures have been weighted and are
representative of all GB adults (aged 18 +)
*** Respondents were asked to choose three
factors that they expected to be the biggest contributors to the income in
retirement
- Alliance
Trust is the brand name of Alliance Trust Savings, a financial services
company that
offers
investment dealing, self-invested personal pensions and a choice of
investment wrappers. Alliance Trust Savings and its subsidiaries
administer nearly £5bn on behalf of more than 46,000 customers (as at 31
July 2007). Alliance Trust Savings is a wholly-owned subsidiary of
Alliance Trust PLC.
- Photographs of Hyman Wolanski are available.