By James Rodger

Copyright birminghammail

UK households are not planning to save into a pension – as they turn to property to fund retirement instead. London homeowners are twice as likely as rest of the UK to rely on property wealth for later life, a study has shown. 56 per cent of homeowners in the capital say they expect to rely on their property to support them in later life, according to research from Annuity Ready. Sarah Lloyd, commercial director at Annuity Ready explaine d that many people are banking on their homes to support them financially in retirement. One 46-year-old bought a flat in West London in 2008 and remains “quietly confident” about its value as she prepares for later life. READ MORE UK national speed limit could be slashed in ‘half’ with all drivers warned She told The i Paper: “Many employees move between jobs and pay into a pension scheme, so managing that pot becomes complex,” adding she will not invest in a pension aside from paying National Insurance contributions to claim the state pension later in life. She added: “I’ve also chosen to be single and child-free so my property assets should be enough to help fund a comfortable retirement. But I’ll probably end up working to cover bills anyway.” A second said: “Buying in London is much harder now; people are paying a lot more for a lot less. So, using property for pension income might not be as accessible for future generations.” And another said: “This is all the more reason why we’re urging people across the UK to take stock of their finances early and get clear on their options.” Scottish Widows’ retirement expert Robert Cochran said the first priority is to “sit down and plan,” stressing that only 39 per cent of people are currently on track for an adequate retirement lifestyle, while “a quarter aren’t sure how pensions work.” Mr Cochran explained that understanding pensions is essential, as they are “long-term investments that help you save for your retirement in a tax-efficient way.” “From the age of 22, you are automatically enrolled into your workplace’s pension scheme and we recommend not opting out,” he said. “Despite the name, salary sacrifice doesn’t reduce your take-home pay,” Mr Cochran said. “In fact, it can boost your pension savings significantly – opting for salary sacrifice could increase your pension savings by £463 a year.”