Thanks to UK pension regulation changes, set to take effect in April this year, pensioners and people approaching retirement will be able to access as much or as little as they want from their pension pots, giving them the opportunity to make larger investments.
According to a survey by Direct Line for Business, nearly a third (32%) of people aged 45 to 64 with a pension would consider investing some or all of their freed pension money into buy-to-let property as an alternative to a more traditional pension fund.
When asked for their reasons for wanting to invest in buy-to-let property, 43% of the potential landlords considered it because it produces a regular income. Almost a quarter (23%) said they were attracted by the perceived security of the investment, while 17% expected capital appreciation, and 9% wanted to leave the property as inheritance for their children.
Jazz Gakhal, head of Direct Line for Business, said, “Buy-to-let can be a flexible investment, providing an immediate source of income as well as being a long term asset. As such, it is understandable that people approaching retirement age are considering investing their pension pots in property.”