House price falls have led to a drop in the number of people relying on property to fund their retirement, a survey showed yesterday.
Only 33 per cent of people now think property will make up a substantial proportion of their pension income, down from 43 per cent last year, according to pension provider Alliance Trust.
Instead people are more likely to be relying on their company or personal pension to fund their old age.
Around 40 per cent of those questioned think their company pension will be their biggest source of retirement income, up from 36 per cent in 2007, while 31 per cent are relying on a personal pension, up from 28 per cent last year.
There has been a slight increase in the number of people hoping for a windfall to supplement their pension at 21 per cent, while 18 per cent still plan to rely on their partner’s pension to see them through retirement.
Only nine per cent of people now think a stock market investment will be a main source of their retirement income, down from 15 per cent in 2007, while there has also been a fall in the number of people relying on a current or future business venture.
Steve Latto, pensions development manager at Alliance Trust, said: “While property prices have been growing rapidly over recent years, the onset of the credit crunch has had noticeable effects on the housing market.
“This no doubt has led to many people reassessing their pension provisions. It is not surprising that faith in property has fallen already this year and may decline further because of the exceptional financial crisis we are living through and the likelihood that we are heading for recession.”