5 Aug 20
The self-employed see property as the safest way to save for their retirement, according to a report.
Royal London based its analysis on figures from the Office for National Statistics (ONS), which showed attitudes towards retirement savings.
The ONS asked all retirement savers in the UK between April 2018 and March 2020, with 35% citing workplace pensions as the safest method.
Workplace pensions provided through the auto-enrolment scheme do not extend to the five million self-employed workers in the UK.
Outside of auto-enrolment, 27% of those polled considered property to be the safest way, compared to only 12% who had a personal pension.
Helen Morrissey, pension specialist at Royal London, said:
“The self-employed continue to see property as the safest way to prepare for their retirement – outstripping [personal] pensions by some distance.
“While property has its place in a retirement planning strategy, care must be taken not to rely on one asset. If prices fall, retirement plans can unravel.
“Boosting pension participation among this group is vital and yet they remain frozen out of auto-enrolment – a policy that has boosted the retirement prospects of millions.”
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