Are you wondering how you will live comfortably after retirement? Have you read how pension providers do not give the best advice? Do you wonder how to make the most of the growing property rental market?
I have 3 clients who are planning to retire….. the first one, let’s call her Mrs A – you may know her!! Well she has had the good fortune to be employed as a teacher, a lecturer and a civil servant and will retire on an income that is almost as much as she earns, currently £35,600. She had no choice about contributing into a pension and now she has a Rolls Royce pension and anyone who is starting to work in her footsteps will never be as well off…..the time she spent deciding where to invest her pension money was nil, her payslip showed her the deduction. She didn’t have to make any choices she lived in her property and paid into her pension.
Good for Mrs A
My next client, Mr B – not very inspired am I? – who has never been in a company pension but was given advice to start a pension when he was a young man. He has always been employed and some of his employers have contributed and others haven’t. His income is, by chance £35,500 and over the years he has watched his pension fund grow to a massive £250,000. He will take his tax-free option of £62,500 and the remaining fund will buy him a pension of around £tba the time he spent on his pension planning was minimal, only about 4 hours each year, he had an IFA to help him and he had to decide how much to invest. There was always another call on his income. He never considered pension or property.
Not so good for Mr B
Guess who my third client is? Yes, Ms C who has always been self employed and would have no pension if he she hadn’t bought property. After buying her first house when she was 20 she went on, adding to her houses each 4 or 5 years. The time she spent building up her portfolio, finding tenants, maintaining and decorating, dealing with complaints and the complications was probably 40 hours each week because her houses were her business, and she had many sleepless nights when interest rates rocketed and her tenants trashed her houses but At 65 she has 8 houses, all paid for and giving her an income of £450 per house, £43,200 pa, £3,600 pm. She made her decision not pension but property.
Great for Ms C
Most people do not have such simple choices and need to review their options so they can make their own decisions..
Financial advice – pension or property – is often an emotional decision why not look at your options…..give me a call to discuss