This month, we are talking Pensions...whether that fills you with dread or joy, we've got the facts you need to know and more importantly how you can be making the most from yours.
It goes without saying that people do not believe their pension pot will be enough to live off. Google search doesn't list top searches as:
But instead lists calculator and credit in its most searched phrases - and I'm sure there are some hopeful clicks on the 'I'm Feeling Lucky' link.
So, what are you doing about your pension? Are you actively involved in your companies pension investments, are you ignoring previous company pension pots letting them accumulate slowly or are you just 'head in the sand' and hoping to feel lucky?
Fortunately, we were inspired by a talk from Mike Holt from The Landlords Pension at our local property meet in Essex and asked him to be a guest contributor to this blog. Check out his article below 'Can I Invest my Pension in Property?' that will help answer some of the questions you have about whether you can invest your pension in property... and when you decide you want to make a change for your future, get in touch with us to help find the most profitable property deal for your pension pot.
And if you're still wondering whether property will fund your dream lifestyle, check out this news post from the Bank of England Chief Economist
As well as looking at how to make the most of our pensions this month, we've been busy partnering with landlords across Essex, securing them guaranteed rent through our sister company Pure Luxury Living and bringing more luxury serviced accommodation to the market.
Wishing you a great month ahead.
Catherine & Steve
Empowering People to Live the Life of their Dreams
Can I Invest my Pension in Property?
The simple answer is YES and we have been helping people to do this for years.
Since 1989, the UK Government has allowed you to invest your pension in property. But very few people actually know how to do this.
You can also use the pension at any age to invest in a business.
We are experts at helping people to do this and know all of the rules and processes.
Is it a complicated process?
It’s actually quite simple and can depend on the type of pension you currently have. If you have a pension that allows you to invest in Property such as a Self-Invested Personal Pension (SIPP) or a Small Self-Administered Scheme (SSAS) then you are in the best position. If you do not have this type of pension then we can help you explore the options that are available.
Will this be expensive?
Some pension providers will charge as little as £500.00 to establish a facility that enables you purchase a property using your pension and the fee is paid for by your pension scheme. We work with all of the main property pension providers and understand their policies, processes and costs.
Remember: Not all pension providers allow the same types of investment.
How much do I need in a pension to do this?
The minimum required in a pension would be £35,000. This could be split across a number of pensions or even a number of people’s pensions. It is possible for you to use the pension to invest in a property by combining your pension with a mortgage.
What age restrictions apply?
There are no age restrictions. If you have a pension and you want to invest the funds in property you can do this at any age. Some people believe it can only happen after age 55 but this is not the case
Will I still get the same pension tax benefits as I do now?
Absolutely. All pensions benefit from not having to pay any income or capital gains tax. For example, if you receive income from a property then there is no tax to pay and if you sell the property, there is no capital gains tax due.
Note that you do have to pay tax when you start to take money out of your pension for your personal use though. You also have to be aged 55 to do this, but talk to us to understand the intricacies.
Where can I get expert help?
We work with pension providers and new property owners across the world. This is a specialist field and there are very few experts that know the pitfalls and exactly what to look out for when investing in property. The Landlord’s Pension has that experience so talk to us today about investing a pension in property.
+44 (0) 1235 426666 www.TheLandlordsPension.co.uk
Turner Invest Directors Catherine & Stephen Turner