A strong reliance on property to ford the insurgencies of retirement may not be the best stratagem. Current tax changes have put pension investment in the spotlight. Buy-to-let investments, typically considered favorable options, are still slated to conceivably yield up to 200 percent, or more. However, initial investment, stamp duties and other dampening investment surcharges are certain to take a bite out of monies. Meanwhile, new analysis suggests money put into pension investment could yield twice that achieved with but-to-let options, without the pesky extras.
Key Takeaways:
- IG has conducted a thorough research project on investments. At first, it seemed like investing in property was the right bet to make.
- But recently, new data suggests that putting money in to a pension is the better choice. That could give investors a good run for their money.
- Consider some of the additional costs related to the investment. Stamp fees and property costs may weigh down any investment made.
“There is a stark contrast in the tax treatment of a property versus a pension, with pensions winning out by a clear mile. The recent tax changes on buy-to-let properties will make a huge impact on the potential for long-term returns.”