Select Page

Retirement planning is an important element of wealth management that helps individuals plan and grow their asset base to allow them to live the life they want in retirement.  For this reason, saving into a pension pot is one of the common ways people use to plan for retirement. Even as better healthcare and lifestyle choices mean the average lifespan continues to increase, it is still prudent to have a financial safety net in place. 

A pension pot will be made up of the total amount of pension contributions made by an individual or their employer (or both)It will also include the capital growth earned from the funds investments, which is usually dependent on how the scheme was set up. It iimportant to note that an individuals pension pot differs from their State Pension, which the government provides. 

By law, individuals can access their pensions upon attaining the minimum age of 55 years, with exceptions given to those retiring early due to disability or ill health. Accordingly, each individual has the freedom to choose how to use their pension funds, a decision that can sometimes be complicated due to the mix of factors involved. Typically, many people will use their pensions to provide an income for their retirement years. However, others are increasingly choosing to invest their pension pots as a way of creating impactful legacies for their families.  

The desire to make a difference is inherent in people. From a retirees perspective, this desire might manifest as a need to establish financial stability for successive generations. As such, channelling pension funds into property investments, for example, can be the best way to ensure that children and grandchildren are taken care of. This option, in particular, is steadily gaining interest, and as the team at Touchstone Education knows, many are opting to put their pensions into property investments 

Paul Smith, Touchstone Education co-founder, understands the value of helping people gain financial freedom through effective investment strategies. At Touchstone Education, he has shared his knowledge and experience in property investment to enable students to establish their own property portfolios. The courses provided are based on proven and actionable systems and processes that are practised by the Touchstone team. 

Is Property Investment a Good Idea? 

Historically, real estate has represented a good investment for many people, with housing prices increasing multiple times when viewed over time. While putting a pension pot into a savings account might be one way to go, the returns don’t compare to property, which can offer good options for those interested in earning rental income.  

A pension saver has options when it comes to investing their pot in property, including withdrawing the entire amount or taking out a portion. Regardless, theres research work to be done to invest in the right type of property, from the location to the various costs involved in being a landlord. Still, it is not a bad time to be a property investor, as figures in recent years have shown that a shortage in the supply of rental homes means annual rents have risen in some of the major cities across the country. 

Building A Legacy 

Creating a lasting legacy through property investment is a task that requires dedication and effort. An individual has to believe in the investment they wish to make. To do this, they need the right information on what has worked and what pitfalls to avoid. Working with people who support the investment keeps an individual focused. At the same time, commitment is essential to getting the work done and ensuring the investor isnt distracted in their quest to leave an impactful legacy.