A new survey conducted by the Office for National Statistics (ONS) has claimed that property investment is seen as a better money-maker than workplace pensions among savers.
Respondents were asked to select the savings option they thought would make the most of their money, with 44% selecting property and only 25% opting for a workplace pension.
While those who responded to the survey appreciated the security of a workplace pension, they weren’t seen as the most profitable option. This is despite the fact they benefit from employer contributions and tax relief.
Property investment, on the other hand, is seen as an increasingly lucrative option thanks to the substantial rise in house prices over the last few years. 28% chose property as the most secure option, followed by 11% for a personal pension and 10% choosing an Isa.
According to the survey, one of the major reasons why property investment is now being seen as more lucrative than a workplace pension is low income levels. This, in turn, means people can put less in their pension scheme because of financial difficulties, not working or still being in education. The study suggested that half of people weren’t contributing towards a pension, up from 38% in July 2012.
With buy-to-let continuing to boom and property investment continuing to increase in popularity, the ONS research found nothing to suggest that the trend for property investment over workplace pensions will be changing anytime soon.