Many people in ‘Generation X’ – those aged 35-54 – plan to use property to help finance their pension, a study among UK adults found.
The Pensions and Lifetime Savings Association (PLSA) found that nearly half (47%) of the Generation X sample within its survey placed an emphasis on property for retirement income, a figure equating to 8.3 million people.
Yet 23% of this group had not yet bought property “which suggests that some may be basing their future financial security on an asset they may never own”, the PLSA said.
The survey was of 1,650 UK adults aged 35-85, with 488 of the respondents considered Generation X.
Other statistics revealed that 54% of Generation X didn’t think much about retirement income but generally thought it will work out OK in the end, and around half were too busy worrying about day-to-day living costs to think about their retirement income.
Graham Vidler, director of external affairs at PLSA, said: “Over eight million people between the ages of 35 and 54 intend to use property to help finance their retirement. Given the significant house price growth that we have seen, this might seem an entirely sensible addition to their pension.
“However of this group, two million people have yet to even take their first step onto the property ladder which is a real concern and suggests they are basing their future financial security on an unrealistic ambition.”
He added that the majority of Generation X find themselves in the “unenviable position of being too young to benefit from generous defined benefit pension schemes and too old to receive the full benefits of automatic enrolment”.
They need support in understanding how their pension, property and any other savings might top up their state pension to give them a decent income in retirement, Vidler said.
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