Buy-to-let is the way forward for a large number of
pension fund members, research has found.
A survey conducted by Nationwide's specialist lender UCB Home Loans found that 68 per cent were keen to put their lettings into a Self Invested Personal Pension (Sipp).
This will be a possibility thanks to changes in the UK
pension regulations from April 6th 2006, otherwise known as A-Day.
Pension holders will be required, however, to have two-thirds of the
property value to be already paid into the policy. The
mortgage lender warns that the move may only be an option for those in middle to upper income brackets.
Keith Astill, marketing director of UCB Home Loans, said that putting
buy-to-let properties into pensions may also add unwanted restrictions: "Effectively speaking, if you put property into your pension, it's there until you retire."
He continued: "It would be unwise to put all your eggs in one basket by investing your pension money solely in property. Pensions advisers would normally advise people to spread their risk over a range of areas."
A-Day will introduce a wide number of changes across the
UK pension system, including allowing a single allowance to be paid in by pension holders and employers. The minimum
retirement age will also be raised from 50 to 55.
