Over one in ten (11%) people surveyed by the bank revealed a worrying reliance on property to provide cash after they retire.
When asked to select which assets or investments they view as funding their retirement a pension was chosen by just 56% of people, highlighting a lack of effective pension planning by a significant number of UK adults.
Marino Valensise, chief investment officer at Barings, said: “It is astounding that over one in ten people have focused all of their retirement planning on property. This suggests poor planning in terms of asset allocation and a poor understanding of the risks involved, by large numbers of people in the UK.
"Assets such as cash and property and instruments such as ISAs and investment trusts can play an active role in retirement planning if managed correctly. For those people that have put aside assets for retirement it is critical to make sure that these are allocated effectively and efficiently, properly adjusted for risk and with a clear understanding of the timescale involved.”
The number of people expecting that cash will form part of their retirement planning increased from 26% in the last survey in 2011 to 29% this time (some 10.5 million people). The number that selected property as forming part of their retirement fund also increased two percentage points to 29%, equating to some 300,000 more people.
The study also found that one in four (25%) – 8.8 million people – admit they simply don’t know how they will fund their retirement.
