Reliance on Property for Pension

Around 13 million homeowners are relying on their property rather than their pensions to provide them with an income during retirement, according to new research.

Prudential says 12.9 million people expect their homes to make up part of their pension and almost two million expect their property to provide the majority of their retirement income.

Compared to savings and investments, double the amount of people relying on their savings for retirement are choosing to put their faith in property to provide at least half of their pension.

When it comes to investments, four times as many people trust that their property will provide for them in their old age compared to those that will make use of other financial investments.

One in five surveyed said they would downsize to a smaller house to use the profits to help fund their retirement.

Ali Crossley, director of lifetime mortgages at Prudential UK, said: "Property can form a great part of a retirement planning portfolio, especially for people who think they will need to supplement their state and personal pension."

Why not consider a high interest individual savings account or ISA to aid you in saving for a pension.