More and more pensioners across the UK are opting for less traditional methods of establishing financial security in their retirement. Many will be taking full advantage of Chancellor George Osborne’s latest pension reforms, which give pensioners complete autonomy to withdraw from their pension savings as and when they please – even the entire lot as one lump sum.
This has caused a surge in pensioners who are planning to increase their retirement income by taking advantage of the government’s buy-to-let scheme or by acquiring a job on a part-time basis.
Investing in buy-to-let is clearly a favourable option for those looking into various opportunities, allowing them to earn a rental yield that is likely to exceed normal savings rates.
YouGov and Old Mutual Wealth
This announcement follows on from a recent research publication made by YouGov on behalf of investment provider, Old Mutual Wealth. The report highlights an increase of 5% for those using, or planning to use buy to let as a source of income during retirement, and an increase of 19% for those who aim to obtain a part-time job. Obtaining retirement income via stocks and shares has fallen by 10% and final salary pension schemes are down 17% too.
A retirement expert at Old Mutual Wealth suggested: “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.”
Wellesley & Co. are the fastest growing P2P Lender of 2014, specialising in asset backed lending and offering rates of return up to 6%. The firm is regulated by the Financial Conduct Authority (FCA). It is advised that you do not place the entirety of your savings in Peer-to-Peer lending as it involves risk and your capital is at risk if a borrower fails to replay their loan. Further to this, Peer-to-Peer lending is not covered by the Financial Services Compensation Scheme (FSCS).
Wellesley & Co. take a range of precautionary steps to ensure that the risk involved is managed. Wellesley only take part in asset backed lending, retain a portion of each loan once made, offer a provision fund and ensure that lenders have the highest level of diversification possible. We do though, appreciate that defaults can occur and have processes in place to minimise the impact if this was the case. Primarily this is controlled through assets that are held as security on every single loan.
Call Wellesley’s customer care team to discuss your investment options on 0800 888 6001, or email [email protected]