Pension or Property for Retirement: Which Is the Better Investment?

The battle between pension or property is one of the biggest debates by investors. With retirement such a crucial step in a person’s life, you may be confused what is the best method for you. Luckily, this guide is here to answer all your questions on property vs pension. Keep reading to learn more.

Pension or Property

The debate of pension or property for retirement enters the minds of many. 

After all, many of us work throughout our lives dreaming and planning the perfect retirement. 

Deciding between putting cash into a pension or opting for an investment into a property is tricky to navigate, with both options having plenty of benefits and risks to consider. 

Property investment and buy to let property is a venture that’s growing in popularity worldwide. 

More and more people from all walks of life are now considering maximising their income with the help of buy to let.  

However, pension plans are equally as popular and feel a lot more secure. But is this the case? 

Our in-depth guide to pension vs property hopes to clear the air and answer all these questions and more.  

Whether you’re 20 and thinking of the future, or you’re nearing retirement age, this guide is ideal for you. 

Here we will discuss everything you need to know about pension and property and help you decide which option is right for you. 

Keep reading to learn all about the pension property debate. 

Boost Your Knowledge and Find Out if Pension or Property Is Right for You in Our New 2021 Guide!

Pension or Property for Retirement Guide

Enter Your Details For Instant Access

Contents

Investing in Property
View More

Investing in Property



Investing in Pensions
View More

Investing in Pensions



Pension or Property
View More

Pension or Property



Top Tips for Building a Retirement Fund
View More

Top Tips for Building a Retirement Fund



Property or Pension: Investing in Property

Invest in Liverpool Property Investment Today With Prices From Just £92,950

View Property

Is Buy to Let Worth it in 2021

Buy to Let: A Practical Example Buy to Let: A Practical Example

Buy to Let: A Practical Example

One of the most popular investment hotspots in the UK is the city of Manchester. 

Located in the North West, Manchester has some of the highest future growth potential in the UK, but it also has some of the highest past growth potential. 

Let’s say you bought an average Manchester property 20 years ago in 2001. 

At the time, in March 2001, you can expect to buy a property for about £44,076 in the northern city. 

Fast forward to the present day, and the average Manchester property is now worth £211,107. 

That means in just 20 years, property prices in the city have increased by 378.96%. 

So, if you bought a Manchester property in 2001 and sold it in 2021, you would earn £167,031 in capital gains. 

Castlefield, Manchester on a sunny day Castlefield, Manchester on a sunny day

This isn’t even taking into account the rent you could have earned. 

Rent has changed a lot over the years, but we will take the current rental figures as an average. 

According to Zoopla, the average rent in Manchester is £1,110 per calendar month. 

That means in 20 years, you would earn roughly £266,400. 

Without factoring in any taxes or expenses, you would earn around £433,431 off just a £44,000 investment.  

This shows just how much you can earn off buy to let if you get it right. 

Of course, property prices are a lot more expensive now, and you may struggle to get such a massive profit in the next 20 years, but it is still possible. You just need to choose the right property investment. 

Earn Up to 8% Returns When You Invest With RWinvest Today

View Properties

How to Choose the Right Property Investment

Aerial view of Liverpool Aerial view of Liverpool

Where to Invest in Property 2021 

Now that we’ve addressed the four pillars of successful property investment, it’s time to see what locations meet these criteria. 

For many investors, there is one obvious choice: The North West. 

Savills has predicted the highest growth rates in the UK in this region, with an anticipated 28.8% growth by 2025. This is higher than London (12.6%), the South East (17%), and the entire UK average of 21.1%. 

When it comes to affordability and rental yields, cities like Liverpool and Manchester offer far higher potential than other UK cities. 

Average property price, average property yield and 5 year growth predictions for major cities in the UK chart Average property price, average property yield and 5 year growth predictions for major cities in the UK chart

Looking at the data, Manchester and Liverpool are clear favourites for potential retirees. Not only do the cities have two of the top three highest average yields, but they also boast affordability on their side, with Liverpool the most affordable location. 

Liverpool prices have exploded in 2021, with property prices currently 18.09% higher than a year prior. 

Both cities also boast some of the highest rental demand in the UK, thanks to a combined student population of 170,000. 

In fact, research from Zoola found that the current ratio between the available supply of property in Manchester and demand for property sat at 1:5. That means for every single property, there are five people in need of a new property. 

Overall, Liverpool and Manchester are two of the best locations in the UK for property investment. 

If you want to learn more about Liverpool property investment and Manchester property investment, be sure to read our latest guides.  

3 Units Remaining

The Summit

Stylish Baltic Triangle Living

Liverpool Prices from £139,950

Assured 7% NET Rental Yields

15-20% Below Market Value

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

10% Deposit

Off Market Manchester Apartments

Premium Residential Investment

Manchester Prices from £219,112

5.5% NET Rental Return

10% Deposit Required

Interior of RWinvest investment property Interior of RWinvest investment property

Do You Want to Be a Landlord? 

The final question you need to ask yourself when choosing property over pension is, do you actually want to become a landlord?” 

Being a landlord is a huge responsibility and can be a lot of work. 

Not only do you need to find tenants, but you also need to deal with their demands, many of which are protected under the law. 

This can be especially problematic if you live far away from your rental property or have a full-time job to deal with. 

Not to worry, though, if this is the case. It’s a common misconception that you need to become a landlord to get into buy to let property investment. 

Through the services of a property management company, you can have a completely hands-off investment. 

Property management companies can do everything a landlord needs to do and will find tenants and deal with all their demands. 

Their services don’t come free, though, and can typically charge 10% of your rental income. But for a completely hands-off investment, they’re incredibly important. 

Many of our properties here at RWinvest come with their own property management companies available, so you don’t even have to spend time looking for a management company. 

If you want to learn more about becoming a landlord and want more advice before buying rental property, check out our in-depth guide.  

Pension vs Property: Investing in a Pension

Putting money into a pension is well-known as the most popular method of saving for retirement.  

There are three main types of pension in the UK – an employer’s pension, a state pension, and a personal pension.

A state pension is government-provided to all eligible citizens who reach the age of 65. This may be subject to change in the future. 

Your pension is paid for through current taxes, and you don’t build up a pot of money like other pensions.  

To be eligible for this pension, you need to build up ‘qualifying years,’ which means making National Insurance contributions from your income. 

Currently, the state pension is a maximum of £179.60 per week, but the actual amount will depend on your National Insurance record. 

For a lot of people who are enrolled in an employer’s workplace pension, investing money into a pension scheme is something that happens instantly, with funds regularly leaving their account each month.  

Every employer must enroll its employees into a pension scheme, with both you and your employer contributing. Even the government contributes through tax relief.  

There are two types of workplace pensions. Most pensions are defined contribution schemes, but some employers offer defined benefit schemes. 

Defined contribution schemes are essentially piggy banks where you pay money in, and it accumulates. Except when you put the money in, it is invested in a long-term growth fund, with the chance for the funds to grow over time. 

On the other hand, defined benefit schemes are typically provided by the public sector and work differently to defined contribution schemes.  

Here, instead of building a pension pot over time, you are given a guaranteed income for life, based on your salary. 

Finally, personal pensions can be opened by yourself if you are self-employed. 

There are several types of personal pensions, but they are all defined contribution schemes.  

They’re pretty similar to workplace pensions but differ in some ways. 

Firstly, you obviously won’t be seeing any contributions from an employer.  

Secondly, if you get a self-invested personal pension (SIPP), you can choose which funds your pension money is invested in, with varying levels of risk. 

As of 2015, pension rules were changed as part of the new 2015 pension freedoms. It means that you can now access the money in your pension from 55 and can take it in one lump sum, buying an annuity, leaving it invested in the stock market, and taking the income when you want, or a combination of all three methods. 

The big benefit of pension’s is tax relief. 

When you pay money into your pension, it is subject to tax. However, the government will refund the tax paid on the part of your income used to contribute to your pension. 

Overall, this means you will see a 25% boost on every pension contribution. In practical terms, for every £1 you contribute, it will be increased to £1.25. 

If you want help choosing a pension, be sure to speak to an expert financial adviser to help you decide what’s best for you. 

Now that we’ve got the basics out the way, let’s look at the pros and cons of investing in a pension vs property. 

Pros of a Pension 

  • If you enrol in a workplace pension, you can benefit from employer contributions on top of your own savings. 
  • Pensions are very tax-efficient, allowing you to benefit from pension tax relief. 
  • Depending on the level of risk you accept, you’re unlikely to end up with less money than you put into your pension. 
  • You can choose from a variety of different pension plans. 

Cons of a Pension 

  • Depending on the amount you put in and the level of risk you’re willing to take, your pension may not grow as much as you need it to for a comfortable retirement. 
  • The government may change the rules of your pension at any point. 
  • Your money is locked away until you turn 55 
  • If you choose a workplace pension, you don’t have control over where your money is invested. 

If you find yourself investing in a pension, the number one question on your lips will likely be if your money is set to grow. 

After all, there is little point in investing in the future if you see little returns. 

According to Moneyfacts, a comparison site, around 95% of pensions saw positive growth in 2018. 

This illustrates consistent growth across the board. However, this growth isn’t necessarily massive. 

In fact, the Office for National Statistics found that only 20% of non-retired people anticipate significant returns on a pension investment. 

Comparatively, 49% of people anticipate maximum returns for property investment.  

After several debacles in the pension world, like the collapse of Carilion, many people no longer feel safe with their pension funds.  

This is certainly understandable, and with the covid-19 pandemic causing even more businesses to collapse and struggle, you may be even more concerned about the future safety of your pension. 

Thankfully, pensions are protected. 

If you have a defined contribution pension, your pension pot will remain safe even if your employer collapses and goes out of business. 

This is because the defined contribution pension is traditionally run by a pension provider, not your employer. 

So, what if there’s an issue with the pension provider itself? 

According to the official government website, if your pension provider cannot pay you and is authorised by the Financial Conduct Authority, you can be compensated for up to 100% of your pension pot value. 

Things differ slightly when you have a defined benefit pension, though. 

Here, the pension is protected by the Pension Protection Fund. 

In these circumstances, you will receive 100% compensation if you reach the age agreed with your pension provider to retire. 

If you are below this age, you will get 90% compensation. 

State Pension

A state pension is government-provided to all eligible citizens who reach the age of 65. This may be subject to change in the future. 

Your pension is paid for through current taxes, and you don’t build up a pot of money like other pensions.  

To be eligible for this pension, you need to build up ‘qualifying years,’ which means making National Insurance contributions from your income. 

Currently, the state pension is a maximum of £179.60 per week, but the actual amount will depend on your National Insurance record. 

Workplace Pension

For a lot of people who are enrolled in an employer’s workplace pension, investing money into a pension scheme is something that happens instantly, with funds regularly leaving their account each month.  

Every employer must enroll its employees into a pension scheme, with both you and your employer contributing. Even the government contributes through tax relief.  

There are two types of workplace pensions. Most pensions are defined contribution schemes, but some employers offer defined benefit schemes. 

Defined contribution schemes are essentially piggy banks where you pay money in, and it accumulates. Except when you put the money in, it is invested in a long-term growth fund, with the chance for the funds to grow over time. 

On the other hand, defined benefit schemes are typically provided by the public sector and work differently to defined contribution schemes.  

Here, instead of building a pension pot over time, you are given a guaranteed income for life, based on your salary. 

Personal Pensions

Finally, personal pensions can be opened by yourself if you are self-employed. 

There are several types of personal pensions, but they are all defined contribution schemes.  

They’re pretty similar to workplace pensions but differ in some ways. 

Firstly, you obviously won’t be seeing any contributions from an employer.  

Secondly, if you get a self-invested personal pension (SIPP), you can choose which funds your pension money is invested in, with varying levels of risk. 

As of 2015, pension rules were changed as part of the new 2015 pension freedoms. It means that you can now access the money in your pension from 55 and can take it in one lump sum, buying an annuity, leaving it invested in the stock market, and taking the income when you want, or a combination of all three methods. 

Pension Tax Relief

The big benefit of pension’s is tax relief. 

When you pay money into your pension, it is subject to tax. However, the government will refund the tax paid on the part of your income used to contribute to your pension. 

Overall, this means you will see a 25% boost on every pension contribution. In practical terms, for every £1 you contribute, it will be increased to £1.25. 

If you want help choosing a pension, be sure to speak to an expert financial adviser to help you decide what’s best for you. 

Now that we’ve got the basics out the way, let’s look at the pros and cons of investing in a pension vs property. 

Pros of a Pension 

  • If you enrol in a workplace pension, you can benefit from employer contributions on top of your own savings. 
  • Pensions are very tax-efficient, allowing you to benefit from pension tax relief. 
  • Depending on the level of risk you accept, you’re unlikely to end up with less money than you put into your pension. 
  • You can choose from a variety of different pension plans. 

Cons of a Pension 

  • Depending on the amount you put in and the level of risk you’re willing to take, your pension may not grow as much as you need it to for a comfortable retirement. 
  • The government may change the rules of your pension at any point. 
  • Your money is locked away until you turn 55 
  • If you choose a workplace pension, you don’t have control over where your money is invested. 

Will Your Money Grow with a Pension?

If you find yourself investing in a pension, the number one question on your lips will likely be if your money is set to grow. 

After all, there is little point in investing in the future if you see little returns. 

According to Moneyfacts, a comparison site, around 95% of pensions saw positive growth in 2018. 

This illustrates consistent growth across the board. However, this growth isn’t necessarily massive. 

In fact, the Office for National Statistics found that only 20% of non-retired people anticipate significant returns on a pension investment. 

Comparatively, 49% of people anticipate maximum returns for property investment.  

Pension Protection

After several debacles in the pension world, like the collapse of Carilion, many people no longer feel safe with their pension funds.  

This is certainly understandable, and with the covid-19 pandemic causing even more businesses to collapse and struggle, you may be even more concerned about the future safety of your pension. 

Thankfully, pensions are protected. 

If you have a defined contribution pension, your pension pot will remain safe even if your employer collapses and goes out of business. 

This is because the defined contribution pension is traditionally run by a pension provider, not your employer. 

So, what if there’s an issue with the pension provider itself? 

According to the official government website, if your pension provider cannot pay you and is authorised by the Financial Conduct Authority, you can be compensated for up to 100% of your pension pot value. 

Things differ slightly when you have a defined benefit pension, though. 

Here, the pension is protected by the Pension Protection Fund. 

In these circumstances, you will receive 100% compensation if you reach the age agreed with your pension provider to retire. 

If you are below this age, you will get 90% compensation. 

More and more people from all walks of life are now considering maximising their income with the help of buy to let.

Daniel Williams, RWinvest

Pension or Property

Now that we looked at pension property investment and its pros and cons, it’s time to compare pension vs property and see which one is the suitable method for you. 

To get the absolute most bang for your buck, having strong tax relief can be incredibly beneficial.  

Taxes can eat away at profits like nothing else can, and if you want to make the best investment possible, it’s important to take advantage of the potential tax relief. 

So, in the battle of property vs pension, which has the most tax advantages? 

As already established, pension contributions have strong tax relief, with each contribution protected from income tax and capital gains tax. 

In fact, for every £1 you place into a pension pot, you will be earning an extra 25p for free.  

When it comes to property investment, though, taxes have changed a lot throughout the years. 

Not only do you have to pay income tax, capital gains tax, and stamp duty tax, amongst other fees, but the tax relief is also a lot less favourable now. 

You may even have to pay inheritance tax if you inherited the property you’re looking to rent out. 

While you do get annual allowances of tax-free cash, and there are ways to reduce buy to let mortgage payments, the level of tax savings has fairly dropped throughout the years. 

It’s why many individual landlords decide to start a limited company to take advantage of more favourable taxes.  

So, what’s best? 

It can be argued that pensions have the most tax advantages, but there is some strong tax relief potential for individual landlords opening a limited company. 

If you’re asking about tax advantages for pension vs property, it’s likely that, overall, pensions win.  

As already mentioned, around 95% of pensions were reported to grow in value in 2018, according to Moneyfacts.  

In general, most pensions grow in value, with it being unlikely you end up with less money than you started with. 

However, with the cost of more risk, property investment easily trumps pensions for better return potential. 

In the last 20 years alone, Manchester property prices increased in value by almost 380%. 

And in 2020, UK house prices increased at their highest rate since 2004, with average UK prices surpassing the £250,000 mark for the first time ever.  

Moreover, with rent also set to increase by 17% by 2025, you can make some massive returns when investing in property. 

Naturally, research is vital here, and you should be sure to thoroughly evaluate the investment potential on a property-by-property basis. 

Investment is always risky. 

By placing your money in an asset, it is always possible for things to go wrong and for you to lose out on your investment.  

However, with the right due diligence and proper research, you can drastically reduce these risks. 

With this in mind, what’s riskier, pensions or property? 

While you may see minimal growth on pensions, pension funds are less risky than property. This is because your investment is usually protected by an independent financial regulator, as outlined in an earlier section. 

However, at the cost of more risk, you can make a lot more sizeable returns on property.  

To decide which one is worth it comes down to personal preference, but if you’re looking to make more money, property is the more suitable option. 

Be sure to speak to a financial advisor to discuss your situation and see which method is appropriate for you. 

Whether or not you choose to invest in a rental property or pension, or use your pension funds to pay for your buy to let purchase, this is a decision that requires lots of research and consideration.  

As a rule of thumb, if your pension fund is something you’re relying on to facilitate a comfortable retirement, you should be cautious about solely buying a property with your pension fund. 

One of the most crucial pieces of advice when it comes to investments is to diversify your investment portfolio as much as possible.  

With this in mind, combining a pension with a property investment venture could be the key to a lucrative retirement fund.  

This way, you don’t need to choose whether to invest in property or pension and can benefit from the two methods at once.  

Let’s look at the reasons why this could be the most beneficial strategy to consider. 

 

Benefits of Combining a Pension With Property 

By investing in multiple assets – in this case, a property and pension – you spread your risk.  

If, for instance, the property market was to suffer in some way and you lost income, you would still have your pension to fall back on.  

This will give you better peace of mind that whatever happens, you can still expect a comfortable retirement.  

If you limit yourself to either property or pension, you won’t benefit from this extra security. 

You’re more likely to end up with a larger retirement fund if you invest in property alongside your pension.  

With the right buy to let investment, you can generate consistent returns through rental income, which you could then either put towards your pension or an additional savings account such as a Lifetime ISA.  

Then, if the market has grown in value over time and your property is worth a lot more than it was when you first purchased it, you can benefit from a large lump sum of returns thanks to capital growth. 

For a lot of people, investing in one property is just the beginning.  

Many firsttime buy to let investors go on to make further investments and build a property portfolio.  

This then provides retirees with a passion and new role to pursue even after they’ve retired from their full-time role.  

Investing solely in a pension vs property combined with a pension is a lot less hands-on and gives you less control of your financial growth. 

Unlike using your pension to buy property, you don’t have to wait till you’re 55 to make your investment.  

This means that you’ll be able to invest at the right time in order to get the full benefit from your investment. 

For instance, the property market in the UK is currently affordable in certain cities such as Liverpool, but with huge house price growth predictions expected.  

If you were to purchase a buy to let property in Liverpool now, you could take advantage of these lower prices and higher potential, maximising your returns on top of your pension savings. 

Which Has the Most Tax Advantages?

To get the absolute most bang for your buck, having strong tax relief can be incredibly beneficial.  

Taxes can eat away at profits like nothing else can, and if you want to make the best investment possible, it’s important to take advantage of the potential tax relief. 

So, in the battle of property vs pension, which has the most tax advantages? 

As already established, pension contributions have strong tax relief, with each contribution protected from income tax and capital gains tax. 

In fact, for every £1 you place into a pension pot, you will be earning an extra 25p for free.  

When it comes to property investment, though, taxes have changed a lot throughout the years. 

Not only do you have to pay income tax, capital gains tax, and stamp duty tax, amongst other fees, but the tax relief is also a lot less favourable now. 

You may even have to pay inheritance tax if you inherited the property you’re looking to rent out. 

While you do get annual allowances of tax-free cash, and there are ways to reduce buy to let mortgage payments, the level of tax savings has fairly dropped throughout the years. 

It’s why many individual landlords decide to start a limited company to take advantage of more favourable taxes.  

So, what’s best? 

It can be argued that pensions have the most tax advantages, but there is some strong tax relief potential for individual landlords opening a limited company. 

If you’re asking about tax advantages for pension vs property, it’s likely that, overall, pensions win.  

Which Has the Best Return Potential?

As already mentioned, around 95% of pensions were reported to grow in value in 2018, according to Moneyfacts.  

In general, most pensions grow in value, with it being unlikely you end up with less money than you started with. 

However, with the cost of more risk, property investment easily trumps pensions for better return potential. 

In the last 20 years alone, Manchester property prices increased in value by almost 380%. 

And in 2020, UK house prices increased at their highest rate since 2004, with average UK prices surpassing the £250,000 mark for the first time ever.  

Moreover, with rent also set to increase by 17% by 2025, you can make some massive returns when investing in property. 

Naturally, research is vital here, and you should be sure to thoroughly evaluate the investment potential on a property-by-property basis. 

Is Property or Pension Less Risky?

Investment is always risky. 

By placing your money in an asset, it is always possible for things to go wrong and for you to lose out on your investment.  

However, with the right due diligence and proper research, you can drastically reduce these risks. 

With this in mind, what’s riskier, pensions or property? 

While you may see minimal growth on pensions, pension funds are less risky than property. This is because your investment is usually protected by an independent financial regulator, as outlined in an earlier section. 

However, at the cost of more risk, you can make a lot more sizeable returns on property.  

To decide which one is worth it comes down to personal preference, but if you’re looking to make more money, property is the more suitable option. 

Be sure to speak to a financial advisor to discuss your situation and see which method is appropriate for you. 

Pension Vs Property: What Should I Invest in for the Highest Retirement Funds? - Part I

Whether or not you choose to invest in a rental property or pension, or use your pension funds to pay for your buy to let purchase, this is a decision that requires lots of research and consideration.  

As a rule of thumb, if your pension fund is something you’re relying on to facilitate a comfortable retirement, you should be cautious about solely buying a property with your pension fund. 

One of the most crucial pieces of advice when it comes to investments is to diversify your investment portfolio as much as possible.  

With this in mind, combining a pension with a property investment venture could be the key to a lucrative retirement fund.  

This way, you don’t need to choose whether to invest in property or pension and can benefit from the two methods at once.  

Let’s look at the reasons why this could be the most beneficial strategy to consider. 

 

Pension Vs Property: What Should I Invest in for the Highest Retirement Funds? - Part II

Benefits of Combining a Pension With Property 

By investing in multiple assets – in this case, a property and pension – you spread your risk.  

If, for instance, the property market was to suffer in some way and you lost income, you would still have your pension to fall back on.  

This will give you better peace of mind that whatever happens, you can still expect a comfortable retirement.  

If you limit yourself to either property or pension, you won’t benefit from this extra security. 

You’re more likely to end up with a larger retirement fund if you invest in property alongside your pension.  

With the right buy to let investment, you can generate consistent returns through rental income, which you could then either put towards your pension or an additional savings account such as a Lifetime ISA.  

Then, if the market has grown in value over time and your property is worth a lot more than it was when you first purchased it, you can benefit from a large lump sum of returns thanks to capital growth. 

For a lot of people, investing in one property is just the beginning.  

Many firsttime buy to let investors go on to make further investments and build a property portfolio.  

This then provides retirees with a passion and new role to pursue even after they’ve retired from their full-time role.  

Investing solely in a pension vs property combined with a pension is a lot less hands-on and gives you less control of your financial growth. 

Unlike using your pension to buy property, you don’t have to wait till you’re 55 to make your investment.  

This means that you’ll be able to invest at the right time in order to get the full benefit from your investment. 

For instance, the property market in the UK is currently affordable in certain cities such as Liverpool, but with huge house price growth predictions expected.  

If you were to purchase a buy to let property in Liverpool now, you could take advantage of these lower prices and higher potential, maximising your returns on top of your pension savings. 

Can Your Home be a Pension?

New residential buildings of flats for rent in Liverpool New residential buildings of flats for rent in Liverpool

Some people consider the property they live in themselves to be part of their pension.  

While property is certainly an appreciating asset, especially if the home you purchase is based in a high-growth area, you’re relying on significant long-term growth to make enough money to live on for your retirement. 

Not to mention the fact that you may not wish to sell your home by the time you retire. 

When people are thinking of whether to invest in property or pension funds for their retirement, they’re usually contemplating buy to let or pension investments rather than a residential home.  

If you’re exploring whether a property or pension is best for your retirement funds, the better option is to focus on buy to let property.  

This way, you benefit from regular rental returns that you will continue to generate for the full course of the property ownership, as well as capital growth returns if you see a rise in the property value. 

Join 25,000 Happy Investors And Invest In UK Property Now

View Properties

Can I Transfer My Pension Into Property?

How Can I Invest My Pension Into Property? 

If you decide that you want to proceed with using pension funds to buy property, there are certain steps you need to take.  

Your first step will be to discuss your plans with your pension provider and inform them that you’re interested in using your pension to buy property.  

They should advise you on what to do next.  

You should also make sure you consult an expert during this process to find information on restrictions that apply to the different property types you may be interested in. 

Using a Pension to Buy Commercial Property Using a Pension to Buy Commercial Property

What About Using a Pension to Buy Commercial Property? 

As an alternative to residential buy to let, some people decide that using their pension to buy commercial property is more beneficial.  

In many ways, this can be the best option for buying property with a pension fund, as you won’t need to pay tax on any income your investment generates if you hold it in a self-invested personal pension due to this being a tax wrapper.  

You also won’t need to pay any capital gains tax with a commercial property.  

Commercial property investments include things like shops, office blocks, care homes, and restaurants. 

Using a Pension to Buy Commercial Property Using a Pension to Buy Commercial Property

While these kinds of investments can be useful for those using pension funds to buy property, residential buy to let tends to be the most attractive property strategy.  

This is because it can be more difficult to find a replacement tenant for your commercial property, which could leave you with void periods where you lose income.  

On the other hand, finding a tenant for residential investments tends to be easier due to high rental demand in a lot of UK cities. 

Buy Luxury Manchester Property Today With Huge Projected 6.5% Returns

View Property

Tips for Building an Attractive Retirement Fund

Don’t Want to Choose Between a Pension or Property? Make a Pension Property Investment Purchase Today

Are you ready to start saving for your financial future with the help of property investment?  

Here at RWinvest, we offer property investment opportunities in the very best UK locations for buy to let.  

With prices from as low as £92,950 and rental yields of up to 8%, you don’t want to miss the investments on offer.  

Contact us today to discuss our current property opportunities and find an investment that meets your personal needs and goals. 

DISCLAIMER 

This ‘property vs pension’ guide has been written to provide information and education on a common theme regarding investments in the UK. The information within our article should not be taken as investment advice, and we urge anyone exploring investment options to seek out financial advisers and carry out independent financial research before making a final decision. 

3 Units Remaining

The Summit

Stylish Baltic Triangle Living

Liverpool Prices from £139,950

Assured 7% NET Rental Yields

15-20% Below Market Value

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

10% Deposit

Off Market Manchester Apartments

Premium Residential Investment

Manchester Prices from £219,112

5.5% NET Rental Return

10% Deposit Required