Residential property valuations have continued to rise at record rates and a much larger renter market, creating a chronic undersupply for those looking for a new home. Over the past ten years, this fantastic progress has made buy-to-let the best performing asset classes.

Although the economic crisis brought buy-to-let to a near standstill between 2008 and 2009, forecasts show that the sector now attracts some of the world's most significant investments. It's easy to see why for those with money to invest. According to lender Paragon, increased rents have resulted in a considerable increase in yields on buy-to-let properties.

Many people are attracted to this choice because of rising property prices and potential buy-to-let yields, especially since annuity rates and excessive charges continue to erode the prospects of earning a sufficient pension income.

According to an exclusive poll of 1,500 people conducted for The Observer by market research firm Consumer Intelligence, one in three people rely on property to supplement their retirement income. A third of participants said they plan to get retirement income from one or more buy-to-let homes, while more than half said they would sell their own home and use the money as a source of income when they retire.

It should come as no surprise that many people are opting for property over pensions. Potential earnings from company and private pension plans are uncertain because they are dependent on the performance of investments. In addition, when most people retire, they must utilise their pension savings to purchase an annuity that will provide them with a lifetime income. However, because of the rising durability of gilts and their low returns, these are frequently of little worth.

The Annuity Bureau has found that the value of annuities has been progressively declining. In October 2003, a 65-year-old with a £50,000 pension fund could have bought annuities with a five-year annual guarantee of around £3,575. However, a decade later, the same fund would buy an income 14.7per cent lower, at 93,050 a year. Despite introducing the government's scheme to enrol people in workplace pensions automatically, experts say minimum contribution levels won't provide for a comfortable retirement.

According to the Annuity Bureau, the value of annuities has been steadily falling. In October 2003, a 65-year-old with a £50,000 pension fund could have purchased a five-year guaranteed annuity for roughly £3,575 per year. A decade later, the same fund would buy an income 14.7% lower, at 93,050 per year. Despite the government's plan to automatically enrol people in employment pensions, experts argue that minimal contribution levels will not be enough to guarantee a pleasant retirement.

The UK property market certainly offers investors the stability of a regular income and the security of bricks and mortar investment. Cities such as Liverpool and Manchester offer solid returns and lower entry levels and provide a great alternative to pension income. With prices across the North West region expected to grow by a further 15% over the next five years, the North West buy-to-let market illustrates that property is an excellent alternative to pension savings.

If you'd like to know more about how you could reinvest your pension into property, speak to a member of our team today.