Property as a pension [Audio]

One of the most common questions I am asked is, ‘Is property investment a good retirement plan?’ As far as I’m concerned, property as a pension is something everyone should consider when it comes to retirement planning.

One of the biggest questions is ‘is property investment a good retirement plan’

Most people, when they think about retirement, think about their pension and what they need to put into their pension fund. This is the standard, UK way of thinking.

At present, we are going through tough economical times and investing in property as a pension allows you to build a balanced portfolio. In terms of pension performance, the stock market hasn’t performed well over last 10 years. Annuity rates have fallen and are continuing to drop, however, property is a different asset class. With a pension fund, you are investing in the asset class of stocks and then in equities when you convert the scheme to an annuity – which is what most people do. The thing about property is that it sits outside of those options, so potentially giving you a great boost to your pension plan. Therefore it should be considered par t of your planning as it’s an asset class that outperforms both the stock market, and will give more of a return than your annuity rate.

So why should you build it in? An average mutual fund where we put our contributions recently averaged at a 3% annual return. Inflation has been as high as 5% – so it’s simply not in keeping with inflation, and more recently it dropped again. It will rise again next year because we are trying to boost the economy. So we are all left with an underperforming pension pot.

The key here is not to put all of your eggs in one basket. Property as a pension is a great way to supplement or replace your pension fund, it’s much more flexible and a much safer bet. I have a pension, and everyone should have a pension, but it’s a different asset class.

Read my blogs on pension annuity and how property as a pension stacks up. 

If you would like advice on property as a pension, contact me for impartial advice.

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 •0845-095-5060

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