Brits have £1trn more wealth in pensions than they do in property, according to the latest figures from the Office for National Statistics.
Between 2010 and 2012 the amount of wealth in pensions and property was roughly the same at £3.53trn.
Since then, wealth in occupational and private pensions has risen nearly £3trn compared to just under £2trn in properties.
That increase means pensions are now worth 42% of total household wealth in Britain compared to property, which is 36% of household wealth.
Sean McCann, chartered financial planner at NFU Mutual, said: “Pensions are often the most valuable asset a person owns, and in many cases worth more than their home.
“Most people have a rough idea of the value of their house, but many would be less confident in estimating the value of their pensions.
“Many invest in a series of pensions throughout their working life, and as a result have a fragmented picture of their pension wealth.
“A financial adviser can help you trace any ‘missing’ pensions and pull together a summary of your pension wealth to help you plan for retirement.”
| GREAT BRITAIN | 2006-08 | 2008-10 | 2010-12 | 2012-14 | 2014-16 | 2016-18 | 2018-20 |
| Property wealth | £3.54trn | £3.38trn | £3.53trn | £3.81trn | £4.37trn | £5.1trn | £5.46trn |
| Pension wealth | £2.89trn | £3.46trn | £3.53trn | £4.39trn | £5.21trn | £6.1trn | £6.45trn |
Regional differences
Pensions were the most valuable assets in most areas of Britain between 2018-20, and represented over half of total household wealth in Scotland, Wales, and the North East.
Property was the most valuable asset in London where it was worth £1.11trn and 49% of total household wealth. In London, pensions were worth £682bn and just 30% of total wealth, the lowest percentage in Britain.
| Pension wealth (% of total wealth) | Property wealth (% of total wealth) | |
| North East | £231bn (52%) | £104bn (23%) |
| North West | £648bn (48%) | £401bn (30%) |
| Yorkshire & the Humber | £492bn (49%) | £283bn (28%) |
| East Midlands | £414bn (46%) | £290bn (32%) |
| West Midlands | £510bn (46%) | £363bn (33%) |
| East of England | £679bn (39%) | £636bn (37%) |
| London | £682bn (30%) | £1.11trillion (49%) |
| South East | £1.22trillion (39%) | £1.23trillion (39%) |
| South West | £590bn (40%) | £563bn (38%) |
| Wales | £371bn (53%) | £190bn (27%) |
| Scotland | £604bn (53%) | £284bn (25%) |
| GREAT BRITAIN | £6.45trillion (42%) | £5.46trillion (36%) |
Defined benefit vs Defined contribution
McCann said: “There was £1.88trn in active occupational defined benefit schemes between 2018-20, compared to just £499bn in active defined contribution schemes.
“There was £2.79trn of wealth in pensions already in payment, and £1.27trillion in preserved pension wealth.
“A large portion of Britain’s pension wealth is held in defined benefit schemes which guarantee a certain level of income based on salary. Many people who hold this type of scheme don’t realise how valuable they are.
“Auto-enrolment has increased the number of people saving into defined contribution schemes, which build up a pot over time that will later fund their retirement. Speaking to a financial adviser can help determine how much you should be investing to fund your later life plans.”
