The Pensions and Lifetime Savings Association (PLSA) has published research highlighting that nearly half (47%) of 35-54 year olds (termed as ‘Generation X’), or 8.3m people in the UK, are planning to use property to help finance their retirement.
However, 23%, or 1.9m people within this group, have yet to buy a property which suggests that some may be basing their future financial security on an asset they may never own. A further breakdown of age groups in Generation X reveals that 36% of 35-44s who have yet to buy their first home feel they will be able to use this asset in retirement while 14% of 45-54s who have yet to climb on the property ladder agree.
Other statistics revealed that 54% of Generation X don’t think much about retirement income but generally think it will work out OK in the end, and around half are too busy worrying about day-to-day living costs to think about their retirement income (51%).
Reliance on property projected to be higher in the East and London:
Figures from across the UK indicate that reliance on using (currently unowned) property for future retirement was greatest in the East of England (14%) and lowest in Yorkshire and The Humber (2%).