'My home is my pension'
`Bricks and mortar’ – the phrase has a ring of solidity and dependability about it.
It particularly resonates in the UK where we have long had a love affair with home ownership. So much so that many investors view property – either in terms of their own homes, or buy-to-let investments – as the best form of retirement saving and superior to any pension fund.
At Reeves we believe that pensions and property should both form part of your retirement planning. Let’s take a look at some of the strengths and weaknesses of each.
At Reeves we don’t think there’s a black and white choice between a pension or property. As we’ve outlined, both have their strengths and weaknesses and you should think about a combination of the two.
Property is one of the basic asset classes and should form part of any balanced portfolio. However, there are other ways to invest in property other than by buying into the physical bricks and mortar. You can take advantage of the returns available in the property market by investing in property companies and funds through your pension scheme. This way, you can also benefit from the tax advantages of pensions without some of the drawbacks of property ownership. If you are particularly keen on property, a Reeves portfolio is flexible so that you can chose to weight investments more towards that sector.
These articles are for information only and are based on specific client circumstances which may be different to yours. No advice should be conferred from the articles. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.