We all hear about how important is to invest in our futures. Auto-enrolment is being rolled out to all businesses across the country to ensure that we’re all saving into our pension funds ready for retirement. Should you rely on bricks and mortar for your retirement? Growth in house prices and lucrative buy-to-let yields are making this an appealing option for many, particularly as paltry annuity rates and excessive charges continue to undermine the chances of getting a decent income from pensions. Here’s 5 reasons why we feel it could be beneficial to take your savings and invest in property instead:

1 - 11.1% YEARLY INCREASE ON PROPERTY VALUES IN SOME AREAS OF THE UK

The growing value of house prices across the UK is just one of the reasons that they’re such a great investment. In fact, the average property in Greater London between December 2013 and December 2015 saw a massive 11.1% increase in value. And while this may be fairly typical for property in Greater London, growth was reported right across the UK, with average increases of 9.5% in the South East and 6% in the South West. The average across the whole of the UK was reported at 4.2%. One advantage of property investing is that you can buy an asset worth £150,000 with a 25% deposit and borrow the rest. If the value increases by 3% a year, your gains effectively quadruple. Bear in mind, however, that if property prices fall, the losses can be catastrophic.

2 - MORTGAGE RATES ARE FALLING

Despite reports of increasing interest rates, mortgage rates have actually fallen since Autumn 2014. Fixed rate mortgages are offering lenders the opportunity to secure some great rates before any increase in interest rates. The reason for the drop is due to a combination of low inflation, a slowing of economic growth and Eurozone fears but it now means with a healthy deposit you could get a two-year fix below 2 per cent, a five-year fix below 3 per cent or even a ten-year fix at just 2.94 per cent. If you’ve been thinking about investing in property, now’s the time to speak to a financial advisor and start making some decisions.

3 - BUY-TO-LET WILL GENERATE YOU AN INCOME NOW… AND IN RETIREMENT

2014/2015 saw a major increase in the uptake of buy-to-let mortgages, and for very good reason. With more and more people opting to rent property rather than buy, those who are fortunate to have the deposit available for a buy-to-let mortgage can begin to reap the benefits.

Here’s how they could generate even greater gains than the same investment in a pension fund:

If £40,000 of pension savings grew on average 4% across 30 years, there would be £132,000 for your retirement. Invest in a buy-to-let property valued at £125,000 and generating approximately £700 a month in rent would mean if the property also increased its value at 4% per year, the returns when selling the property after 30 years would be a significantly higher £414,000. Of course, you’ll also be able to pay off the mortgage and live off the rent.

4 - YOU CAN RELEASE THE CASH IN RETIREMENT

Whether you’ve invested in one or a number of buy-to-let properties throughout your lifetime, or you’ve simply grown and improved the value of your family home over the years, in retirement you’ll have the option to cash out.

Continuing to manage your buy-to-let properties may prove too much hard work later in life, so you can sell off the remainder of your properties and take the financial gains you should have generated. Similarly, you may now feel your large family home is too spacious now that your family have moved out into property of their own. If that is the case, you have the option to downsize to a home more suitable and cosy to your new lifestyle, while also benefiting from unlocking the value in your home to enjoy your retirement.

5 - NEW PENSION RULES ALLOW YOU TO USE YOUR FUND TO INVEST IN PROPERTY

If you have already invested in your pension fund and are approaching retirement age, that doesn’t mean you can’t take advantage of property investments. One thing we do know about the pension reforms is that the new flexible access  introduced last year will allow you to withdraw a portion of your savings to do with as you wish (such as investing in property). Buy-to-let mortgages are increasingly popular and a great way for retirees to generate an additional income later in life.

There are pitfalls to relying on returns from property and it’s not for everyone. Prices aren't rising everywhere and transaction costs to buy are very high, including stamp duty, legal fees and estate agents' fees. Vacancy rates can eat away at returns and some tenants can be a headache.