Earlier this year, the pension rules in the UK were relaxed somewhat, allowing people who have been putting money away for their retirement more freedom to use their own money as they pleased.
As of April, pension policyholders are allowed to take money out in a number of lump sums, which allows them the chance to then spend money wherever and however they want to, rather than being forced to buy annuities as they were in the past.
Initially, it was reported that this saw a third of people looking to invest in the property market, and more specifically buy-to-let homes that they can rent out for profit. However, in a new Global Real Estate Outlook report from property investment company, IP Global, it has been suggested that the figure could be even higher.
It said that 70 per cent of those pensioners who were granted full control of their own money in April have opted to draw down all or some of their retirement money so far. It was also said that the major investment tactic since this has been investment in property - both domestically and internationally.
The reason for this is twofold. On one hand, the price of property is rising, giving them the potential for a long-term profit in terms of capital gains, while the price of rent is also favourable at the moment, in particular in areas like Manchester and London. This means people can earn throughout their retirement, giving themselves a steady income.
On the other hand, there is also the fact that property brings about a level of security that is hard to find with other investment classes. Stocks and shares, for example, bring good returns, but can be volatile, whereas property investment, for the time being at least, has a degree of security and long-term strength around it.