1 in 3 bank on property to pay for their retirement

ALMOST a third of workers believe investing in property is the best way to save for retirement.

Being a landlord is favoured over private pensions, cash Isas, savings accounts, shares and Premium Bonds. Only company pensions were more popular.

Experts said the figures, from the Office for National Statistics, show our love affair with property has not waned.

And they warned that ignoring the other savings options could put workers in financial trouble later in life.

‘The British obsession with property could leave millions of people exposed to risk and uncertainty when planning their retirement,’ said Sir Steve Webb, a former pensions minister and director at investment firm Royal London.

‘There is nothing wrong with investing in property as part of a mix of investments inside a pension. But staking your whole retirement on investing in a single property whose value could go up or down substantially is to put all your eggs in one basket.

‘For employees in particular, saving in a

‘All your eggs in one basket’

pension is a no-brainer. Choosing to invest in a property instead of a workplace pension means the loss of vital contributions from your employer.’

The ONS report found that property was the favoured savings option for 29 per cent of all workers and preferred most by those aged between 25 and 44.

Company pensions were favoured by 40 per cent of those surveyed between July 2016 and December 2017.

More employees have started saving into a workplace pension since an auto-enrolment scheme was introduced in 2012.

Tom Selby, senior analyst at investment firm AJ Bell, said: ‘While property remains an important source of equity in retirement for many people, investors shouldn’t rely solely on this as a drop in values would be a serious kick in the teeth.’

Money Mail research has revealed that stock market-linked pensions typically deliver better returns than property.