Pension property investment to the rescue

I’ve just read an article in the Telegraph stating following research on over 1,500 adults, 44% of them are planning on using pension property investment as well as savings or inheritance to see them through their retirement. This is the equivalent of 16 million adults not expecting to draw a pension when the give up work. Of the 44% who will rely on alternative means to a pension fund, 30% will live off savings and 30% will live off property to fund retirement and another 17% are expecting inheritance to fund their investment.

Alarmingly 25% simply didn’t know how they would fund their retirement.

The country is definitely ‘sleep walking’ into a pension crisis. With life expectancy extending the pressure on the State to support everyone is just unsustainable, so you can understand with the low take up of personal pensions why the government is introducing ‘auto enrolment’.  Unfortunately, however, this will be too little too late for many families and so they will need to find alternative solutions which can generate results in a far shorter time period.

Likewise relying on inheritance, savings or the equity in your property alone to support you in your retirement are highly risky strategies.

As people live longer the inheritance you thought you were going to get can easily be eaten into to support living or care home expenses.  A recent report in the telegraph http://www.telegraph.co.uk/news/uknews/9525754/Care-home-costs-soar-across-retirement-Britain.html stated that In the South West, the cost of a single room now stands at £31,304, up £2,496 or 8.7 per cent in just a year.

Savings can also be eroded very quickly and with no way of topping up the pot you would require a massive savings pot to start with to feel confident you can weather the cost of supporting yourself for 25yrs – 30yrs, and the eroding impact of inflation.  Running out of money would be a very unpleasant experience.

Likewise relying on downsizing to a smaller home and using the released equity as a savings pot is another highly dangerous strategy.   Having our own family Mortgage business we know that when it comes to it many families do not want to leave their family home, or the money they thought they would release is less once all the bills have been paid.   Even a significant sum can be eroded over time and seeing your pension provision dwindling at a faster rate than your health can be devastating.

The answer is to education people to invest in assets which produce a steady income.  My preferred choice is property investment as you can see it and touch it.  You have the control to invest where you want and if you invest for cash flow your tenants can pay your mortgage down and you can receive a monthly income in retirement. An income which will not run out.

You can also benefit from equity growth overtime, and unlike all the other strategies documented in this report property investment has the massive advantage that you are building a pension solution not only for yourself but your future generations, as the property is not lost on your death but can be passed to your children.

To discuss how pension property investment could be the best option for you, contact Gill Alton today. 

Gill Alton

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Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for investors in the UK.

Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market.

The service is specifically aimed to support those who recognise the value of a UK investment portfolio, but lack the time, or knowledge to be able to invest for themselves because they are full time employees or Business Owners. With full consultation and comprehensive financial analysis, clients can be assured that their portfolio of strong yielding properties will be built to exacting standards and they will be kept up to date every step of the way.

Having been involved in property for 16 years Gill has built a personal portfolio for her family, and in addition to Alton Property Partners, runs a Property Mentoring Business, Venus Property Mentoring which focuses on supporting new investors onto the investing ladder. Having originally left the Corporate world to be a Qualified Mortgage Broker, Gill’s husband now focuses on their family Mortgage Brokerage in Maidenhead – Alton Mortgages.

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Alton Property Partners
6 Bramble Drive, Maidenhead BerkshireUKSL6 3NX United Kindom 
Gill@altonpropertypartners.co.uk •0845-095-5060

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