A fifth of over 55’s are looking to purchase their retirement home now and let it out until they retire according to landlordtoday.co.uk
The research carried out by pension provider, Prudential, found that 32 per cent of those over 55’s who had already invested in a buy to let property had done so in order to live in it on their retirement.
With the changes to the pension regulations in 2015 more than 50 percent of investors who are over 55 investors said that they would consider using a lump sum from their pension pot in order to fund all or part of their ideal retire property purchase.
Prudential retirement expert, Stan Russell said “The advent of older people opting to buy-to-let-to retire is an interesting development, and in a post-pension freedoms world its appeal is understandable.”
The research also showed that of those over 55’s who took part in the survey over a quarter said they were looking to purchase a buy to let property in the next 24 months, with 70 percent planning on becoming landlords for the for the first time.
An unexpected outcome that emerged from the survey showed that 17 percent of the over 55’s who already owned a buy to let property said they had done so with the main aim of bequeathing the property to family or loved ones.
Stan Russell added that “there are a number of risks involved for anyone looking to take money from their pension savings, irrespective of the reasons.”
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