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Will Releasing Pensions lead to a lot more BTL

Carlos77 · 2014-03-21 19:19:38

With the news of the changes in pension rules, and being able to release the pot rather than buy an annuity, do we think a lot of people will start taking the cash and investing in BTL property to get better returns than an annuity will give, and the additional bonus of handing it to the kids to inherit, rather than…

Comments

dunstonh Posts: 120,181 Forumite

30 March 2014 at 11:15AM

Suppose someone has a pension pot of £500k, as opposed to being forced to take an annuity with the remaining pot of £375k+, people can now choose how the invest the additional £375k in whatever way they decide is best at that time.

Pensions offer the same investment options as an ISA or unwrapped investments. They can be at the same charges. The only difference is the tax handling.

The investment choice has been there for many years. All people need to do is consider which tax wrapper is best for them and to stop treating pensions as a product. It hasnt been a product for a number of years now. It is a tax wrapper like ISA.

I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.

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