People enrolled on workplace pensions can access their pension savings from the age of 55. Many want to invest their savings to provide a pension income. Few of them are reportedly investing in commercial property.

Jessica List writing in December 2017 for the website citywire.co.uk reported that a survey of financial advisers found that only about 1% of property transactions are funded by UK pension savings.

Most financial advisers were aware that commercial property can be a worthwhile investment. List wondered why advisors were not persuading their clients to invest their pension money in property. If the pension savings are not enough to purchase the whole property, a commercial mortgage can be used to complete the purchase.

One area where people were purchasing property was business owners who often use their pension savings to purchase their business premises in their own name. This is to prevent having to sell the building to pay creditors should the business fail.

Many pensioners want to invest their pension savings in investments that provide a good regular income. Commercial property can generate rental income, but often more money is made from capital growth. Non-property investments can be partly cashed in if the individual requires a lump sum. Pensioners could feel that commercial property is less attractive as it is difficult to sell part of the building to release cash.

As more pensioners have access to their pensions savings, financial advisers can discuss the merits of investing in commercial property.