Property investment ‘most effective retirement plan’

Property investment ‘most effective retirement plan’

Investing in property is seen as a more profitable option than workplace pensions, according to savers.


  • Savers favour investing in property over traditional workplace pensions, even taking tax relief and employer contributions into account
  • Landlords view their property investments as “nest eggs” for the future
  • Property’s appreciating value can help provide and maintain a high standard of living after retirement

Property investment is seen as a more effective retirement plan than workplace pensions, according to a new report conducted by the Office for National Statistics.

When asked which option they felt gave better money-making opportunities, 44% of respondents selected property, with workplace pensions falling into second at 25%. Even with tax relief and employer contributions, workplace pensions were seen as a less solid investment than property.

The stability offered by workplace pensions was appreciated in comparison to property, as 41% of respondents selected this as the most secure option. However, due to rising house prices and the demand for rental accommodation, investing in property has become a far more attractive avenue to take.

“For many people now approaching retirement, their property is likely to make a significant contribution to their overall wealth in retirement and will be particularly relevant as a capital reserve for costs such as later-life care,” said Tom McPhail, Head of Retirement Policy at Hargreaves Lansdown.

37% of landlords view their property as a nest egg for the future and appreciate the value building over time, with UK property prices rising on average by 24.2% in the last decade.

Workplace pensions and property investments both comfortably outperformed all other asset categories in returns, including personal pensions, ISAs, and stocks and shares.

Subscribe to our newsletter

Please enter your name and email address

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Select Property Group in relation to its property investment brands.

There was an error with your subscription. Please try again.
Thank you for subscribing. You will now be fully informed of all investment property news and insights.