Pension reform & buying to let'

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Pension reform & buying to let'
'Pension freedom' reforms can give people greater control of how they spend, save or invest their retirement pots from this 04 (2015). Important changes include removing the need to purchase an annuity to deliver earnings until a person pass away, giving access to invest-and-drawdown schemes previously limited to richer savers, and the axing of a 55 % 'death tax' on pension pots remaining invested.
Also, savers will not be restricted to one opportunity to take a solitary tax-free lump sum worth 25 per cent of their pension plan pots, with the remainder taxed as income afterwards. Instead, Chancellor George Osborne has announced that folks will be able to dip in making as many withdrawals as they wish, every time getting 25 per cent tax-free and the rest taxed like income.
The modifications apply to people who have 'defined contribution' or 'money purchase' pension plan schemes, which take contributions from both employer and employee and invest them to give a pot of cash at pension. They do not apply to those with much more generous gold-plated 'final salary' pensions which provide a assured income after retirement.
Do you want to become a buy-to-let property manager to fund your retirement?
Buy-to-let property has proved an appealing investment for many individuals, especially given the alternatives recently. The financial crisis triggered big stock exchange volatility, while central financial institution stimulus initiatives have decimated savings rates. Individuals looking for much better returns have turned to the property market, and unless they were really unwise or unfortunate, the bet has paid off handsomely.
Prices have stayed buoyant, not only supplying capital gains but making home ownership prohibitive for most people who were forced to continue renting, which has provided a handy stream of tenants for buy-to-let property owners. The Government has used numerous steps to prop up the housing market, like its Funding for Lending and Help to Buy schemes. Now its pension freedom reforms could create a new buy-to-let boom, potentially pushing up prices once more and making this an even better investment prospect.
Like all other buy-to-let investors, you will need to do your sums and work out whether it is really the very best choice for a person. Compare the potential rental income to what you would get on an income-based investment fund or a fixed interest rate savings account. You also need to be prepared to do some research into the best area to buy in, and the kind of property that will be easiest to rent on the market before making a purchase.
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