Property investment is a safer bet for retirement than a pension, according to the Bank of England’s chief economist.
Andy Haldane believes that pensions are too complicated, while continually increasing property prices make for a lucrative investment.
With many reliant on a pension at the end of their working life, this statement may come as a surprise. Haldane agreed with the general view that the better investment “ought to be a pension” but went on to say that it’s “almost certainly property.”
However, the comments should be taken with a pinch of salt. Haldane’s salary at the Bank of England is around £180,000 - way above the national average - while his pension is set to be over £80,000 when he retires.
The economist, who owns two properties, has been described as ‘irresponsible’ by former pensions minister Ros Altmann.
Despite a raft of buy-to-let changes in 2016, studies suggest that buy-to-let is still profitable.
Potential landlords will, however, need to think carefully about which market to target and thoroughly research the best buy-to-let areas for their investment.
Getting to grips with the legalities of becoming a landlord is also essential - the likes of right-to-rent checks, fire safety and landlord insurance are potential pitfalls for those who dive straight in.
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