2nd
Oct 2015
A landlord group states that hardly any of their members are considering cashing in their pensions to increase their portfolio of properties.
The report found that only 5 per cent of members who had pensions in place, were going to take advantage of the new pensions changes that came into force in April, to expand their portfolio.
14% said they were thinking about cashing in a lump sum and 11 per cent said their pension plans were not big enough to consider that option.
Only 7% said they had planned to use a lump sum for other activities, whereas 19 per cent were still unsure of what they would do when their pensions was due.
Over 60 per cent of landlords plan to live off of their existing portfolio in their retirement or are doing so now. Surprisingly just over a quarter said that they were seriously considering selling some of their properties for their “Golden Years”.
A spokesperson for the group said: “There has been a lot of talk around pensions being used to invest in buy-to-let (BTL) since the announcement on pension freedoms was made last year. While the changes may be attractive to those considering a move into BTL, it’s clearly not that popular an option for landlords.”
She also commented :“Those currently in the market already have an asset to use if they want to expand and therefore, depending on circumstance, will have the means to put a lump sum towards other investments or plans; that is if they want to “.
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