UK -A total of 7% of UK adults (3.2m people) are relying on property investments to fund their retirement, leaving them dangerously exposed to fluctuations in the UK property market and interest rate movements, according to Baring Asset Management.
Barings explained that 10% of 35-44 year olds were planning on retiring with the income they receive from property assets, compared with 8% of 45-54 year olds and 6% of 25-34 year olds.
A further 33% of UK adults (15.1m people) have not made any provision for their retirement.
Marino Valensise, CIO at Barings, said: “Too many people are relying on property to fund their retirement. It’s crucial that we plan for our old age and that our investments are diversified amongst a number of different asset classes - not just property.”
Valensise explained that the UK has seen an incredible increase in wealth in the last 20 years, fuelled, in part, by rising house prices in both nominal (gross of inflation) and real (net of inflation) terms; and one factor has been the easier access to borrowing.
“Your pension should be invested in diversified assets that are in line with your age, lifestyle commitments and number of years to retirement,” said Valensise.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.