Guardian bear Patrick Collinson - Pensions? BTL is perhaps the way to go

brit1234

Its the QE and low interest rates killing annuity rates. Again it is the prudent suffering to bail out those reckless borrowers.

RenovationMan

PasturesNew wrote: »

I've no pension. Not bovver'd. The state pension, on the basis I'll have a house that's fully paid up, will give me more disposable income in my pocket than most of the years I've actually gone out to work.

Spare a thought to how you will heat, light and maintain the house. You'll be in most days (mainly because you have no money to go out) and so you will need to have the heating on all winter.

It looks like you're setting yourself up to have the depressing choice that many pensioners currently face; whether to eat or heat. I'm sure you'll be bovver'd then, though it'll be too late to do anything about it.

chewmylegoff

Pobby wrote: »

Just wondering where the people who rent generate their pensions.

The same way that someone who makes mortgage payments accrues a pension I imagine. I seem to be doing fine with my pension whilst renting (and I know people who rent the property they live in but also own investment properties).

undetterred

brit1234 wrote: »

Its the QE and low interest rates killing annuity rates. Again it is the prudent suffering to bail out those reckless borrowers.

Change the record and lose that chip off the shoulder.

HAMISH_MCTAVISH

Thrugelmir wrote: »

Anybody that walks away from "free money" is a fool.

They are indeed.

And I'd bet that tenants pays more of the average BTL-ers mortgage than an employer pays of the average employees pension.

StevieJ

The only plus about that article is that the guy has the balls to make a u-turn, unfortunately he is probably way out again

chucky

brit1234 wrote: »

Its the QE and low interest rates killing annuity rates. Again it is the prudent suffering to bail out those reckless borrowers.

The usual sound bite with no grip on reality.

Prudent? It's those who are blinkered (for whatever reason) that are suffering if people really think that pensions are the only way to save for retirement. Blaiming QE or low rates is pointless, blame the reason you chose the pension or the pension fund or the pension vehicle.

drc

What about all the younger generations who can just afford to pay the rent (if they are lucky enough to have a job). They just can't afford a pension, they are too busy paying for the pension (BTL) of those lucky enough to be born at a specific time. The future really is bleak for most young people who will neither have a home of their own or a pension. Short term thinking by the government who will never have to worry about these sort of things being born into wealth.

kabayiri

I understand from the anecdotals that some of the posters here have good pension pots, or significant btl interest, to support retirement, but I wonder what the future outlook holds for average Joe or Joanne starting out ?

In terms of private pension fundamentals which bit of the article is incorrect ?

Will annuity rates recover dramatically, or does increasing lifespan make this unlikely ?

Are we in for a period of flat or low growth in stockmarkets which could run for decades, with the resulting impact on pension growth?

Are younger average earners facing competing pressures on where to allocate their income? (More rental commitment, higher cost of living). Will this hit pension savings?

It seems the only option for government is to 'retune' peoples' expectations on what retirement will look like.

Thrugelmir

kabayiri wrote: »

It seems the only option for government is to 'retune' peoples' expectations on what retirement will look like.

People will retune themselves once reality kicks in. There's no easy way of "making" money. In the West we're working shorter and less hours, becoming less productive and wanting to be paid more. Someone in the BRICS wants "my" job and lifestyle. Also has the hunger and desire to achieve this goal.