Baring Asset Management Reveals One in Eight Rely on Property for Pension

New research (August 2011) from leading international investment firm, Baring Asset Management, reveals a staggering 13.6 million British adults do not have a pension. Equally alarming is the fact 1.4 million people aged 55 and older do not have a pension in place.

It is not surprising, then, to see Barings’ research reveal one in eight people surveyed say they are relying on property investment for their pension. I have been exposing the flaws in traditional pensions and promoting property for your pension for some time now.

My series, The Growing Pensions Scandal and How To Protect Your Future! has been serialised in Your Property Network magazine, is available online in my blog and will also soon be available as a downloadable guide (free to registered Axis members).

Call us today on +44(0)1273 447 300 to discuss how to use property as your pension and read on for the latest facts and figures from Barings.

I can understand a high proportion of people aged 18 to 24 not yet saving for a pension, given other, more pressing demands on their incomes such as paying student debts and/or still being in higher education. However, almost half (47%) of 25 to 34 year olds have not yet started saving either. And this is the most critical age range in terms of establishing a pension fund!

The findings show an increasing number of men without a pension provision, with 30% currently without as opposed to 28% in 2010. In contrast, more women have started saving as the number has fallen from 47% in 2010 to 44% in 2011.

An increasing number of people (13%, up from 12% in 2010) said they are relying on pension for their property. Again, more women are using this provision than men (14% up from 9% in 2010). Furthermore, 16% of those aged 65+ who are still in employment say they will rely on property to fund their retirement.

Marino Valensise, chief investment officer for Barings, comments: “Having such a large number of people without any form of pension provision is very worrying. It is highly likely that for those approaching retirement age, continuing to work indefinitely will be mandatory given they have no income streams.

“At the same time, it is concerning to learn that only half of people in their late twenties and early thirties are contributing into a pension scheme. Kick starting a pension around this time is absolutely paramount given the impact it has on the end sum. Investing into a pension little and often is a much better approach than not at all.”

In my opinion, investing anything into a traditional pension is simply throwing good money after bad! If you have read any of my The Growing Pensions Scandal series, then you will know exactly how angry the subject makes me. You will also know how passionate I am about helping investors grow an alternative pension fund with property.

Yes, I agree that it is never too early to start planning your pension. And yes I agree that it is very concerning that so many people have no provision at all. However, I also understand exactly why British citizens are starting to reject traditional annuities. Quite simply, we just don’t have any faith in the Financial Services industry anymore!

I think it is great that a growing number of people are turning to property for their pension! However, you still shouldn’t leave anything to chance. If people are relying solely on their own property, then they may still have a problem. Or, if you have a portfolio which isn’t performing as well as you need it to, you may still have a problem.

What is the answer? Without hesitation I say you need to create a property investment portfolio tailored specifically to meet your own, individual, pension pot needs. This is where Axis steps in! We have developed bespoke strategies to generate the highest and fastest possible returns in growth, short term profit and income from smart investment in property.

So, don’t put yourself in danger of becoming just another pensions scandal statistic. Take positive action today and regain control over your own financial future before it is too late.

Call us on +44(0)1273 447 300 to find out how we can help you develop a property portfolio which will fulfil your own pension provision needs. Or email me direct at rod@axiscontact.com.

Live with abundance,

Rod Thomas FCA

Posted in Finance & Money

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