Nearly 5% of non-retired people in UK- the equivalent of around 2 million people -are planning on selling their primary residence to fund their retirement, according to the latest consumer research by Baring Asset Management.
In total, 13% of people – nearly 5 million – said they are planning to rent or sell property to fund their retirement, up from 11% last year and the highest such figure since 2003.
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The study found that the economic climate has had an impact on people looking to use property to fund some or all of their retirement. Indeed, the number of people saying they now plan to sell or downsize a property to fund all of their retirement has doubled since last year, rising from 2% to 4% (equivalent to 1.5 million people).
The study also found that the number of people now planning to rent out property to fund all or some of their retirement was also 4%.
Marino Valensise, chief investment officer at Barings, said: "Property can form part of a risk adjusted, diversified investment portfolio but this year’s survey indicates that more people are investing in property as a retirement source and the concern is that this could mean they are over-concentrated in the asset class.
"It is worrying that the number of people relying exclusively on their property to fund retirement has increased. Property prices can be volatile so putting your faith in your home to fund retirement is risky."
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By GlobalData
