We talk a lot about investments on our blog; after all, it’s our bread and butter. But in recent months we’ve seen the investment market changing slightly, especially so with clients who are of retirement age. So, we thought we’d explore this in detail and share our findings, so you can stay up-to-date too.
Rule Changes and Pension Investment Options
Back in April, the rules regarding pensions changed and UK retirees now have more investment opportunities than ever. Previously, people would mainly stick to annuities, shares or bonds, but over the past few months there has been quite a large switch to property investment as many believe it to be safe as houses.
The Rise of the ‘Granlords’
With these new opportunities, more and more older people are deciding to become buy-to-let investors in their retirement. And it could make great financial sense.
According to the Key Retirement Pensioner Property Index, the average pensioner’s property wealth has risen by £900 a month since the pension reforms. Collectively that amounts to more than £12.5 billion in just three months.
So, why are pensioners seeing such outcomes more frequently than younger folk? Well, the older you are, the more likely you are to own your home outright.
Where to Invest and Cash-in?
There’s no surprise that London is deemed the best place for retirees to invest in property. The average pensioner here has made gains of £16,260 in the last three months alone and figures are only set to rise.
So, there could be thousands of pensioners out there sitting on an increasingly larger nest egg. And you could join them if you consider property when working out your future retirement income.
Select Property state that, at the moment, around 3 in 4 pensioners consider making a property investment when retiring as they believe buy-to-let is a more predictable long-term option than the stock market.
The UK private renting market has doubled in size in the past 10 years and the demand for rental accommodation is at an all-time high.
So, are you considering investing in property when you retire? Then speak to our qualified financial brokers today and let us help you find the best deals for your money. After all, we’re experts at findinggreat buy-to-let finance deals.