Seven per cent of non-retired people – the equivalent of around 2.5 million individuals – are planning to sell their primary residence to fund their retirement, according to Baring Asset Management.
That’s an increase of two percentage points from 2013.
In total, 16 of people – nearly six million – say they are planning to rent or sell property to fund their retirement, up from 13 per cent last year and the highest such figure since 2009, according to Barings’ latest consumer research.
The survey found that the economic climate continues to have an impact on people looking to use property to fund some or all of their retirement: the number saying they now plan to sell or downsize a property to fund all of their retirement has risen to 4 per cent from 2 per cent in 2012.
The research found that 33 per cent of people who last year were planning on selling and/or renting property to fund some or all of their retirement last year have made no changes to their plans.
But it also revealed that 3 per cent (or 1.3 million people) are now planning to rent out secondary properties to fund some or all of their retirement.
Rod Aldridge, head of UK Wholesale Distribution at Barings, says the results are concerning especially as house prices can be volatile.
“Property can, of course, form part of a diversified investment portfolio but this year’s research indicates that more people are investing in property as a retirement source and this could mean they are too concentrated in the asset class.”
“It is imperative that people diversify their investments through a range of assets which can, of course, include property.”
Loading ...