Buy to let investments the new pensions?

Buy to let investments the new pensions?

Commenting on the March 1015 Budget announcement that up to five million existing pensioners can now swap their annuity for cash, Nick Breton, Head of Direct Line for Business said “People already in retirement can now join the pensions freedom party.  Research shows a third of those aged 45 to 64 with a pension would consider accessing these funds to purchase a buy to let property and today’s announcement allows those already retired to follow suit,  swapping their annuity for a fixed lump sum they could put into a buy to let investment.  Britain’s ranks of ‘silver landlords’ could increase significantly following the change in regulation, which offers more freedom for those in retirement. For some retirees it could be a good way to diversify their investments and income, however, prospective landlords should seek financial advice to ensure they understand the returns and risks of investing in property and especially the tax implications.”

Categories: News, UK Pensions

About Author