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Property to be half landlord's pension

Landlords anticipate that their property investments will contribute up to half of their retirement incomes, equating to around £19,785 according to Platinum Property Partners.

After surveying 500 buy-to-let investors, it was found that other investors expect their total retirement income to reach around £35,600 with state and private pensions also contributing. This figure is higher than the average pensioner household income estimated by the Office of National Statistics, which put the total at £19,300.

Under new rules unveiled in the Budget, retirees will be given far more freedom over their pensions, and buy-to-let is seen as an obvious investment to make. However, PPP found that one third of adults approaching retirement are considering property investment, despite the fact that the majority have no experience.

Among the 35 per cent of middle earners who are nearing retirement age and have shown interest in buy-to-let, 45 per cent claim the reasoning behind this is due to it being a better investment opportunity than a pension. However, 2 in 5 people plan to sell buy-to-let properties which they already own rather than living on rental income.

PPP’s Managing Director Tony Bennett said: ‘Anyone approaching retirement will be looking to maximise the income they are set to receive from all of their investments and buy-to-let investors are no different. Healthy income can be achieved in retirement through property investment, but it needs to be researched, planned and approached in a business-like manner. Waiting until you’re at the point of giving up work is not the best option.’

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