How To Build Your Pension Through Property

Are you worried about your pension provision, either because your savings and pension investments are not working out, or because you don't have a pension at all? You are not alone. A Prudential pensions survey in summer 2010 revealed some concerning statistics. Many people appear to be ignoring the pension issue altogether and 3 in 5 said they need to continue working after retirement age because their pension was not enough.

Is there another way? There is according to Rod, who has developed a new workshop and guide entitled How To Build Your Pension Through Property. Rod's latest book, The Freedom Plan, includes both the pension through property system and the SystemZERO philosophy of investing and is due for publication early 2011.

Pensions through property

Rod says: "The secret of all success lies in making the right decisions and taking the right actions. Ignoring the issue does not make it go away. First we need to educate ourselves and assess our options. Then we act. In my view, the best option is to invest in property. That's why I have developed How To Build Your Pension Through Property."

How To Build Your Pension Through Property covers a number of crucial areas, including:

• Why existing pensions are doomed.
• How backing your future pension with share investments is a high risk strategy, with no guarantee to deliver what you need.
• Why even with allowing for tax relief on pension contributions you are still not doing the best with your money.
• Why investment in property can deliver an outstanding return that dwarfs the growth in your traditional pension capital value.
• How property can deliver true financial security - even if you have little money and little time.
• The three life stages of an investor and how they relate to property and pensions.
• The five key issues you must deal with to make the right property decisions.

• The three critical elements of leverage, velocity and making ‘front end' profit that are essential to the success of your property pension strategy.

An invaluable education

Rod's first dedicated How To Build Your Pension Through Property workshop will be held at the exclusive, private members club, Eight Club, London, on 28th October 2010. (Further details at the end of this article)

Rod comments: "Investment has to be a careful strategy that will meet a number of important considerations. You can work with existing assets, either cash or property. You should take into account the years to retirement - the more the better. Ensure a low risk approach if investing later in life. Consider the balance between capital growth now and income flow later."

He continues: "My workshop and guide will help you understand all of these issues and Axis is here to assist you in taking action. We have strategies with the potential to deliver exceptional returns in a period from less than one year, up to twenty years."

Rely on hope, or 300% plus capital growth?

With projected figures such as up to 20% per annum net on capital, or capital growth of 300% plus in 5 years, Rod's Build Your Pension Through Property strategy certainly sounds more compelling than relying on the state.

The Prudential survey reports couples over 40 are failing to plan for retirement by avoiding discussing pensions with their partners. 32% admitted they did not know what pension provision their partner had. A further 22% said they had never discussed financial planning for retirement with their other half.

Andy Brown, investments director at Prudential, says: "Essentially, this could mean millions of UK adults are banking on hope as their core retirement strategy and are approaching what is arguably the most important financial decision without a full understanding of their household financial situation."

Vince Smith-Hughes, Prudential's head of business development for pensions, adds: "47% of people believe they are financially well prepared for retirement, but the difference between perception and reality is vast."

Smith-Hughes continues: "Clearly there is a discrepancy between what people believe constitutes being financially well prepared for retirement and the actual income required to ensure that you are. This is not something that you should begin thinking about the year you retire, it takes time to plan for retirement and to work out what the best way of utilising your funds is, so you have the income that you want and, more importantly, the income that you need for as long as you need it."

The golden years - work or play?

57% of people surveyed said they would be willing to continue to work after retirement age. 25% said they would be happy to work for an additional 5 years or more. 7% of these said they would continue for 10 years.

The research highlights changing attitudes to retirement as people come to terms with increased longevity, as well as the recession on retirement saving plans. Today's average 65 year old man is expected to live to 83 and today's average 65 year old woman to 85.

In fact, it is the over 65s who are the most willing to keep working. 62% said they would stay in employment to boost their retirement savings. Plus, 59% of people surveyed by Prudential said they feared they would outlive their pension savings.

Richard Harrison, corporate pensions director at Prudential, comments: "Increasing longevity means workers are having to accept that pensions will be stretched over a longer period and will therefore deliver a lower income than they might expect."

Smith-Hughes concludes: "Working beyond the normal retirement age is already a reality for many people who either have insufficient savings, or simply want a greater income when they do come to retire. People should seek advice early to make sure they are well prepared for a retirement which could last 20 years plus."

Baby steps - too little, too late

The current Coalition Government indicates the need for the State Pension Age (SPA) to rise further and faster than the steps legislated by the previous Labour Government. The 2007 Pensions Act cited the SPA for both men and women to rise a year at a time. This was from 65 - 66 by 2026; from 66 - 67 by 2036; and from 67 - 68 by 2046.

However, this readdressing of the SPA is not helping the situation today. If anything, the pension debacle seems to be getting worse.

Newspaper headlines scream: "Our ever shrinking pension pay outs: millions now facing the lowest returns on investments since records began" and "Staff will foot bill for pension pot deficit."

The Daily Mail reports: "Millions approaching retirement could be devastated by the worst pension pay outs since records began. Despite saving the same amount of money into their pensions, they face the dire prospect of getting about half the income they would have received 15 years ago."

The Telegraph adds: "Staff will be forced to pay more to maintain their company pensions because of new rules that will see employers contributing less. Under laws introduced by Labour, employers will have to enrol all their staff into a company pension scheme from 2012, unless workers specifically opt out."

From the comfort of your armchair ... or a beach in the Bahamas

The further one sinks into the mire of pension reports, the more depressing the whole thing seems. However, as stated at the beginning of this article, there is another way.

With property as your pension, it is possible to retire as early or as late as you choose. It is possible to supplement, completely replace, or double or triple your pre-retirement income and/or your pension itself. Even better, choosing property as your pension requires very little time on the part of the investor.

Rod Thomas explains: "At Axis we operate a philosophy we call SystemZERO. This means we make things as hands-off for our clients as possible. We source the properties, we negotiate the best deals and we set up the system to generate a high income and return, with very little effort on the part of the investor."

He concludes: "You can build your pension through property from the comfort of your armchair. Quite literally! Or maybe from a beach somewhere in the Bahamas. How hands-on or hands-off you are is up to you. Either way, choosing property as your pension will provide you with the freedom, security and comfort everyone deserves in their retirement years."

If you are ready to find out more about How To Build Your Pension Through Property, you can access the recording and slides from Rod's talk at the Landlord and Letting show. Registration is free for Axis members and £99 (plus VAT) for non-members. It is free to become an Axis Gold member.

Want to learn more about UK property investment in general? Check out Understanding UK Investment Property. View details of currently available UK investment properties.

Listen to Rod's podcast from his recent seminar at The Landlord and Letting Show here.

Or, if you're ready to invest and want to know what we can do to help, call David Ball or Russell Bonner, Axis UK Portfolio Managers, on 01273 447 300 for a no obligation introductory discussion.

Live with Abundance

Rod Thomas FCA  

Posted in Creating Wealth

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