Property or Pension?

The Bank of England's chief economist, Andy Haldane, recently claimed that property, not pensions, was "almost certainly" the best bet for retirement investment. The debate has however raged for generations: is property or a pension better for saving for retirement?

According to analysis by researcher company, Finalytiq, property is not something to stake your retirement on, because savers have suffered the wrath of the rising house prices, leaving them spending huge proportions of their salaries on paying off their loans. But, on the flip-side, Lucian Cook of Savills believes that prolonged low interest rates means property will remain popular among investors, despite a greater stamp duty burden on second homes, reduced income tax relief on interest payments and the prospect of buy-to-let mortgage regulation.

With house prices soaring by almost 300 per cent over the past quarter of a century, and with a pension pot traditionally being considered your best chance of securing a decent income when you retire, it's no wonder the UK public is confused. Either way though, financial security in retirement does not just happen. It takes planning and commitment, and money too!

Speak to a Beavis Morgan adviser who will ask the right questions relating to your individual situation, review your property assets, give practical advice on the best approach towards planning for retirement and mitigating inheritance tax and, if necessary, introduce you to an Independent Financial Adviser who will assess your situation and inform you of the pension protections best suited to you. To find out more, contact Steve Govey or your usual Beavis Morgan Partner.