Property can be pension alternative

Investing in property can be an alternative to a pension fund, one expert has suggested.

Ruth Emery, assistant editor of Pensions Management Magazine, has confirmed that buying into the housing market can be a wise option when saving for the future, but warned that "to put all your eggs in one basket is foolish".

She advised those considering property investment as a safeguard for their financial future to think about other avenues to channel their money into.

"People are investing more in property, which is fine if they have other investments," said Ms Emery.

Also highlighted were the growing use of Self-invested Personal Pensions (Sipps) to diversify the spread of an individual’s investments.

"The more sophisticated investors are investing in Sipps where you can choose lots of different investments, such as property and hedge funds, and have a diversified portfolio, and also get the tax relief from the government as it’s a pension," Ms Emery pointed out.

The average age at which workers are retiring (64.2) is higher than any time since 1984 according to the Officer for National Statistics.