Changes to pension rules come into effect on 6th April 2015 but how do you know what’s right for you? There are options like investing via a ‘crowd-funding’ website for example, buying a property outright or perhaps just paying down your existing mortgage. Many people will find that the costs – not least the tax you may pay when cashing all or part of your pension will outweigh the risks of running your own retirement fund but for some the lure of investing in bricks and mortar may be too much to resist. As a rather naive commentator said on the Today program this morning (1hr 24 min, 46sec), “Over last ten years we’ve (Martin & Cº) have looked at the returns landlords have got, the lowest have been 6% and the highest 13% (per annum?). You’d struggle to find any other asset class that’s given that level of return. 13% even even beats bonds of the ten years“.
If you are thinking of transferring all or some of your pension then you may find my Pocket Agent service helpful. £150 (plus VAT) is a small price to pay for guidance on what you may be considering. As we are often reminded, past performance is not a guide to the future and you may want some reassurance that your instincts when it comes to property are right when considering how you will pay for your retirement.
If you’re confused about the new pensions landscape you may find this a handy 3 minute summary.