Just under half of the British public do not have a pension to fall back on in retirement, according to research on pension planning from Baring Asset Management.

Of the 1,567 members of the public surveyed, 44% are not considering pensions as a funding source for when they retire, while 17% are counting on an inheritance windfall to finance their later years.

Almost 30% are expecting cash and an additional 29% are hoping property to support their retirement, with just over one in 10 (11%) of those relying solely on their property to pay for their retired lifestyle.

Marino Valensise, chief investment officer at Barings, said: 'It is very surprising to see just how varied retirement funding sources have become for many people in the UK. While diversification is crucial to best-practice asset management, the suitability of some of these sources can be questioned, such as a reliance on inheritance. Overall, the most challenging finding is that nearly half of the adult UK population admit to not having a formal pension at all.'

Valensie added: 'It is astounding that over one in ten people have focused all of their retirement planning on property. This suggests poor planning in terms of asset allocation, and a poor understanding of the risks involved, by large numbers of people in the UK. Assets such as cash and property, and instruments such as ISAs and investment trusts, can play an active role in retirement planning if managed correctly. For those people that have put aside assets for retirement, it is critical to make sure that these are allocated effectively and efficiently, properly adjusted for risk and with a clear understanding of the timescale involved.'

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