Property vs pensions: Where should you put your money?
One of the most important decisions in life is what to do with your money. Getting it right could mean being financially comfortable forever, but getting it wrong could be disastrous.
When looking ahead to retirement, two of the main options are property and pensions. New research from the Office for National Statistics found that 44% of respondents believed property would “make the most of their money”, compared to 25% who thought an employer pension.
So which is better? Let’s take a look at some of the main considerations:
Pensions are perhaps the most tax efficient way to save, and this can greatly increase the final value of the fund as contributions will have been boosted.
Property, on the other hand, has numerous costs – rental income or growth in the value will need to be large enough to recoup all of them before a profit can be made. A price crash could put you into negative equity, or you may be unable to sell and make a profit.
Choosing the most appropriate option for retirement can be difficult.
Can you afford to pick the wrong one?
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Tax treatment depends on individual circumstances and may be subject to change in the future
The details provided in this article are for general information only and are in no way deemed to be financial advice. All of the material is correct as of the publication date, but could be out-of-date by the time you read the article. For our latest information and news, please see our articles section: https://www.portafina.co.uk/whats-new
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