Property 'can be an alternative to pensions'

Scottish Widows has said that property can still provide a useful alternative contingency fund to pensions, but has warned that this option naturally becomes less attractive as the market slows.

With prices falling by 0.8 per cent this month, according to today's Nationwide house price index, some may be inclined to look elsewhere when investing their money – but that is not all that bricks and mortar offer, according to the firm.

Ease of access is another major consideration that can be taken into account when making such decisions, Scottish Widows said.

"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," said Ian Naismith, head of pensions market development at Scottish Widows.

"Some people may be thinking, 'I may get more from property over the long term', although property could be looking slightly dodgy at the moment.

"Another factor is that people may not like their money to be tied up these days. In a pension scheme you cannot get at it and some people may like to know that the money is there if they need it," Mr Naismith added.

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