A record number of people are relying exclusively on their property to fund their retirement, Rod Aldridge, head of wholesale distribution at Barings, has said.
He said: “It is worrying that the number of people relying exclusively on their property to fund retirement has increased again. This could mean that they are too concentrated in the asset class.”
He said that “property prices can be volatile, so relying on your home to provide all your income to fund retirement is risky”.
Research has revealed that one in 14 non-retired people, around 2.5 million people, are planning to sell their property to fund their retirement. This has increased by 2 per cent year-on-year.
In total, 16 per cent of people, nearly 6 million, have said they plan to sell or rent property to fund retirement, an increase of 13 per cent and the highest proportion since 2009.
Property can form part of a risk-adjusted, diversified retirement portfolio, but investors need to be aware of the risks, Mr Aldridge said.
Adviser view
Kevin Hever, financial adviser at Wolverhampton-based Cornerstone Financial, said: “It is worrying to hear of people who want to put all their eggs in one basket.”
