Many people currently investing in property are doing so because they see it as an alternative source of funds for their retirement, one expert has said.
Property investment is taking over from more traditional forms of pension saving because of the recent strong performance of the housing market according to Ian Naismith, head of pensions at Scottish Widows.
He warned, however, that the long-term health of the property market could not be guaranteed, meaning that pension funds were still a recommended method of saving towards retirement.
"A lot of people are looking at property as being an alternative to pensions these days, mainly because property prices have done so well over these last few years," Mr Naismith said.
"Property could be looking slightly dodgy at the moment," he added, however.
If the property market begins to decline, people may switch to pensions again, he suggested.
Recent research published by TNS found that half of those aged between 55 and 64 have no retirement funds in place apart from their basic state pension.
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