The vast majority of the population are not saving for retirement and the UK has huge debts to pay off reducing pensions for public sector workers, is it any wonder that property offers a more stable alternative?
Jon Ainge from IPSBMV, comments:
"It used to be the case that pensions were the boring investment you made starting at the age of thirty when retirement was something your parents worried about.
"Not much has changed there, what has changed is the return you are likely to see on all those years of contributions and it's not for the better.
"Most of that money you invest in the early years will find its way into equities, which as we know are in an unprecedented period of volatility. As a result the 'boring pension' has been replaced with a rollercoaster ride to retirement. "
In 2011 alone the FTSE was down by nearly 4% in 2011 and bank shares were down 25% in the same period, so with further volatility expected in 2012 as a result of the sovereign debt crisis, the dramatic ups and downs of the world's stock markets are likely to continue for at least a 5th year running.
Against this backdrop it is little wonder that property, which provides an excellent store of value in the long term has become the new 'boring' for those who simply want to maintain living standards in retirement.
Jon Ainge continued:
"I would rather have somewhere boring to put my money and guarantee something to live on in retirement. Even a £300,000 pension pot is likely to provide an annual income of just £18,000 per annum, not much even by today's living standards."
Not surprisingly, Department of Work and Pensions data from this year shows that only 40% of us are putting money into a private pension and just three in 10 people aged between 20 and 40 saving for retirement.
This leaves 7 in 10 people with no plan A let alone a plan B for the future. On top of this less than four in 10 Britons are making their own provision for retirement.
