New research from Baring Asset Management has revealed that nearly half (44%) of people do not currently expect to use a pension to fund their retirement. This is equivalent to 15.7 million people aged over 18 who are not yet retired.
According to the study, many people are instead relying on property, cash and even an inheritance to fund their retirement.
Around 17% of people, or 6 million in the UK, said they expect inheritance to help fund their retirement. This expectation is more acute for people in the A/B social segment (the upper and middle classes): nearly one in four (23%), said that inherited assets form part of their retirement planning, up from 20% in the last survey in 2011.
However, with the average UK inheritance estimated at around £45,000 per person, many people may be overestimating the role inherited assets may play in helping fund a retirement.