Pensions not considered ‘retirement funding source’

Nearly half (44%) of people do not currently expect to use a pension to fund their retirement, according to Baring Asset Management.

This is equivalent to 15.7 million people aged over 18 who are not yet retired. 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.

The research shows that many people are relying on property, cash and even an inheritance to fund their retirement. The number of people expecting that cash will form part of their retirement planning increased from 26%2 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.

Even more surprisingly, according to the research from Barings, 17% of people, or 6 million in the UK, said they expect inheritance to help fund their retirement.

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