The number of people who play to rent or sell property to fund retirement has increased 3 per cent from last year to 16 per cent, marking the highest such figure since 2009, research from Baring Asset Management has revealed.
Research conducted by ICM research on 1,500 UK adults found 7 per cent of non-retired people admitted they are planning on selling their primary residence to fund their retirement.
This represents an increase of two percentage points from the research in 2013.
The survey found the economic climate continues to have an impact on people looking to use property to fund some or all of their retirement, with the number saying they now plan to sell or downsize a property to fund all of their retirement also steadily increasing.
The number saying they now plan to sell or downsize a property to fund all of their retirement has doubled to 4 per cent from 2 per cent in 2012.
Rod Aldridge, head of UK wholesale distribution at Barings, said: “It is worrying that the number of people relying exclusively on their property to fund retirement has increased again.
“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.”
Regionally, those living in the West Midlands are potentially the most exposed to property as an asset class, while the least potentially exposed are those in Wales.
Mr Aldridge said: “The level of risk involved in 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.
“Investing for your retirement is about long-term planning and as people are living longer, more emphasis needs to be put on how a lengthier retirement will be funded. It is imperative that people diversify their investments through a range of assets which can, of course, include property.”
