Retirees are increasingly banking on buy-to-let and part-time jobs for future financial security
02-11-2015
People are opting for less conventional means of guaranteeing a financially secure retirement, and taking advantage of chancellor George Osborne's reforms which give them "complete freedom" to withdraw from their pension pots.
People gearing up for retirement are increasingly planning to boost their incomes using the government's buy-to-let scheme or with a part-time job. Research by YouGov, on behalf of investment provider Old Mutual Wealth, found the number was five per cent and 19 per cent higher for pre-retirees compared to current retirees.
However, pre-retirees are increasingly shunning more traditional means of retirement income with stocks, shares and bonds down 10 per cent and final salary pension schemes down 17 per cent. This is against a backdrop of record-low interest rates eroding savers' returns and companies increasingly ditching so-called "gold-plated" pension schemes.
"While property prices have gone up reasonably consistently in the last twenty years, relying too heavily on house-price appreciation could leave savers disappointed if growth slows in the long-term," Adrian Walker, retirement planning expert at Old Mutual Wealth, said.
"When planning ahead for retirement, think about having a mixture of different assets to rely on, perhaps including [a mix of] Isas, pensions and property."