Brits’ Retirement Fantasy: Owning Property Suffices for Golden Years

No Financial Plans: Much has been written about the future of the U.S. Social Security system. But Americans aren’t the only ones worried about a government pension system headed for the rocks. In Great Britain, 86 percent of workers between 55 and 64 lack confidence that the state-run pension system will be able support them in retirement. That’s according to a study by Taylor Nelson Sofres, a London-based consulting firm specializing in statistical research. Two-thirds are concerned they won’t have enough money when they leave the workforce, and seven of 10 expect their standard of living to decline.

In spite of all this, few workers are motivated to take action. Of those interviewed, less than half (46 percent) have done little to no financial planning. Their reluctance may stem from Britain’s belief in the “power of property,” according to the report. Nearly three-quarters say that investing in property provides a good way to prepare for retirement. While that’s undoubtedly true, the report warns that people might be making the mistake of putting all their retirement eggs into the golden basket of property ownership—without recognizing the need for ready cash for living expenses.