The research found that 5% of non-retired people, or around two million, admitted they were planning on selling their primary residence to fund their retirement.
In total, 13% of people, nearly five million, said they were planning to rent or sell property to fund their retirement, up from 11% last year and the highest figure since 2009, Baring said.
The survey, which was conducted by ICM research on behalf of Baring questioned 1581 non-retired GB adults in the beginning of July.
It found that the economic climate was particularly influencial on people’s retirement plans and that the number of people saying they now plan to sell or downsize a property to fund all of their retirement has doubled since last year, to 4%.
Barings chief investment officer Marino Valensise said: “Property can form part of a risk-adjusted, diversified investment portfolio but this year’s survey indicates that more people are investing in property as a retirement source and the concern is that this could mean they are over-concentrated in the asset class.
“It is worrying that the number of people relying exclusively on their property to fund retirement has increased. Property prices can be volatile so putting your faith in your home to fund retirement is risky.”
People living in the South West were particularly affected whereas Scotland and the West Midlands was the least potentially exposed region.
Valensise added: “Young and old need to fully appreciate the level of risk involved in expecting to fund your retirement through the use of a volatile asset such as their own home, or from other properties such as buy-to-let.
“Investing for your retirement is about long-term planning and as people are living longer, more emphasis needs to be put on how a lengthier retirement will be funded. It is imperative that people diversify their investments through a range of assets which can, of course, include property.”
