Workplace pension seen as safest retirement investment vehicle

Workplace pension schemes are considered to be the safest way to invest for retirement, according to new research by the Office for National Statistics (ONS).

A survey of 10,000 UK households in the period July 2014 to June 2015 showed that 41% of people surveyed consider workplace pension schemes as the safest method for retirement. 28% reported property investment as the second safest method.

44% of those asked thought that investing in property was the retirement strategy most likely to make the most out their money while 25% chose workplace pension schemes.

The percentage of people that are confident their income in retirement will provide a good standard of living, increased to 52% in July 2014 to June 2015.

The proportion of people not currently contributing to a pension rose to 50%. Low income, not working and being in education were the key reasons given for not paying into a scheme.

Tom McPhail, head of retirement policy at Hargreaves Lansdown, said:

“The combination of employer contributions, tax relief, secure trust laws, investment diversification and control over the withdrawals make workplace pensions the obvious default retirement saving vehicle.

“However, for many people now approaching retirement, their property is likely to make a significant contribution to their overall wealth in retirement and will be particularly relevant as a capital reserve for costs such as later-life care.”