3.7 million private pensions fall deficit by 29%

Sunday 19th April 2009

Property of the Week from Property Mentor Workshop

Area – Brighton

Property type – End of Terraced House

Number of Bedrooms – 5

Length on Market – 9 months

Valuation – £340,000

Bought – £240,000

Positive Cash Flow – £1,253 per Month

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Private pensions have taken a huge blow in the last 17 months, according to pension consultants Aon. (Read the news here)

Following a study into the effect falling share prices is having on private pensions, it was discovered more than 3.7 million people across the UK are experiencing falls of 29% in the value of their pensions. A reduction of over £161 billion.

Which schemes are involved?

Primarily focused on those involved in final-salary schemes, other projects affected by these pension reductions include: individual private pension plans, company DC schemes and additional voluntary contributions (AVC’s).

How will these falls affect those near retirement?

Whilst many homeowners are choosing to for-go making pension contributions until the economy has recovered, this could be a big mistake.

With people on average living longer than they did 15 years ago – men 77.2 years; women 81.5 years – more and more people are entering into retirement without the adequate funding to support them in later life.

So whilst reducing your pension contributions may be helping your current finances, in the long term this – combined with the existing economic climate – could have a damaging affect upon your future.

Is there a safer way to secure your finances?

The simple answer is yes. Whilst paying into a pension scheme may feel risky at the moment, there is alternative route you can take that will allow you to safely build up your pension no matter the financial climate: Property investment.

By investing in buy-to-let properties and leasing them out to tenants, you can offer yourself an additional positive income of £500 every month that can all be done in your spare time.

More importantly, by attending the 2 hour Property Mentor taster session you will learn how to invest using little, if any, of your own money, ensuring that your personal finances are always secure.

Interested in learning more about how property investment can offer your finances the security it deserves? Why not try the 2 hour taster session and discover why buy-to-let could be the answer you are looking for.
 

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