Property Vs. Pensions

Brits have lost faith in pension schemes with almost three quarters of people admitting they simply don't trust them, a new survey revealed.

More than half worry the scheme will collapse and take their money with it while 40 per cent don't think it will provide enough for their retirement.

But this fear means Brits are heading for a poverty-stricken retirement as 42 per cent of people haven't made any plans for their income when they finish work.

The survey, by property website yourpropertyclub.com, revealed that a quarter of 50-60 year olds have no money in their retirement fund.

Forty per cent of people admit to putting pension planning off because it ''seems ages away'' while an ambitious 22 per cent are planning on earning enough to see them through.

But the rising fear of failed pension schemes has seen a boom in the property market with investors buying in to fund their retirement.

One in five adults have invested in property to fund their twilight years and another 30 per cent are planning to do so in the future.

Three quarters of Brits think property is a better investment than a pension scheme.

One in 10 retired Brits have already invested in property to help fund their lifestyle.

Brett Wood, managing director of yourpropertyclub.com, said: ''Investing in property is a great way to get you through your retirement. It can also provide you with some extra income before you finish work.

''Investing in a property allows you to put money into something you can see, rather than paying it into a pension scheme wondering if you will see it again.

''yourpropertyclub.com helps people to build a property portfolio and provides all the support and education you need in order to effectively replace the pension with a portfolio of buy-to-let properties.''

According to 80 per cent of the 2,500 surveyed, young people should be more concerned about how they are going to pay their way through their retirement.

Fifteen per cent of parents are so concerned about how their children are going to cope that they have invested in property for them.