Baby-boomers continue to target property investment to boost retirement income

Property investment is a key concern for the 'Baby-boomers', the generation born between the end of the Second World War and the mid-1960s, as they enter or approach retirement. A new survey shows nearly one in ten over-55s plan to purchase at least one new property as a buy-to-let investment.

The increased investment in buy-to-let property from over-55s is expected to contribute £775 billion to the UK property market.

For many older people the Chancellor’s liberalisation of the rules on pensions means that they are now able to draw large amounts of cash from their pensions upfront. This has made further investment in property a realistic prospect for hundreds of thousands of people.

In fact, recent research from Direct Line for Business revealed that a third of pension holders would consider investing part of their pension in buy-to-let property.

Stephen Ludlow, Chairman of ludlowthompson says: “Since the changes on pensions freedoms, there has been a surge of over-55s looking to invest their savings in buy-to-let property.”

“These investments can provide a steady income stream before and throughout their retirement, whilst also boasting greater potential for income growth than many other investments.”

“In addition, unlike many annuities a buy-to-let property can be passed on to beneficiaries, this is very much a long term investment that people are making with their children in mind.”