Pre-retirees planning on using their primary residence to fund their retirement are acting in a risky manner, Barings Asset Management has warned.
This caution comes as the investment firm revealed that almost 6 million people (16%) of the 1,500 people it polled said they would rent or sell their property to fund their later years.
The firm said it was 'worrying' that the number of people relying exclusively on their property had increased again, up from 13% last year, representing the highest figure since 2009.
Barings said greater emphasis must to be put on how a lengthier retirement would be funded.
Rod Aldridge, head of UK wholesale distribution at Barings, said: 'Property can, of course, form part of a diversified investment portfolio but this year's research indicates that more people are investing in property as a retirement sources and this could mean they are too concentrated in the asset class.
'Property prices can be volatile so relying in your home to provide all your income to fund retirement is risky.'
The poll found that the economic climate continued to have an impact on people looking to use property to fund some or all of their retirement.
It found that the number of people planning to downsize a property to fund all of their retirement had risen to 4% from 2% in 2012.
And a third (33%) said they were planning on either selling or renting to fund some or all of their retirement, while 3% want to rent out secondary property.
Regionally people living in the West Midlands are potentially the most exposed to property as an asset class. Around 6% said they plan to sell their primary residence to fund their retirement, while 21% plan on selling or renting their secondary residence.
The least potentially exposes are those in Wales, the firm said. Of those polled 5% from this region said they plan to sell their residence and 5% to sell or rent other properties.
Aldridge noted that it is imperative that people diversify their investments through a range of assets.
