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Home > Pensions > Personal Pensions

Nearly half of Brits have no pension

Nearly half of non-retired Brits do not expect to use a pension to fund their retirement, a survey by Baring Asset Management has claimed

By Marc Shoffman | Published Aug 08, 2012 | comments

The poll found 47 per cent, or 15.7m people, were instead relying on property, cash and even an inheritance to fund their retirement.

Marino Valensis, chief investment officer of Barings, said it was surprising that 17 per cent of people, or 6m in the UK, said they expect inheritance to help fund their retirement, warning that the average inheritance in the UK is £45,000 each person.

He said: “It is surprising to see just how varied retirement funding sources have become for many people in the UK.

“While diversification is crucial to best-practice asset management, the suitability of some of these sources can be questioned, such as a reliance on inheritance. The most challenging finding is that nearly half of the adult UK population admit to not having a formal pension at all.”

The number of people expecting that cash will form part of their retirement planning increased from 26 per cent in the 2011 survey to 29 per cent, or 10.5m people.

The number that selected property as forming part of their retirement fund also increased two percentage points to 29 per cent, equating to 300,000 more people.

The study also found that one in four, or 8.8m people, admit they do not know how they will fund their retirement.

In a separate question about pension arrangements, one in ten, the equivalent of 4.1m people, stated that their property is their pension and they have no other provision.

Which of the following sources do you expect to use to fund your retirement? (Respondents could select all that apply)

 

20121

Pension

56%

Cash

29%

Property

29%

ISAs

26%

Inheritance

17%

Investment trusts

9%

Don't know

25%

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