Most of the money that flows into institutional real estate around the world is targeted at providing individuals with retirement income or long-term security. Many of those placing that money in the form of regular contributions to pension plans or insurance policies may not realise that their money — or a portion of their money, as dictated by asset allocation strategies — is being invested in real estate. But it is, it performs, and it makes a significant contribution to their ultimate wellbeing.

That could change going forward, for a number of reasons. Real estate’s foundations are in danger of being undermined. Principal among these reasons is the continuing shift in countries that have funded occupational pension systems from defined benefit to defined contribution provision, with investment and annuity risk transferring wholly or partially from the public or corporate sponsor to the individual member.

Hallelujah freedom

Much has bee