The nest egg is an essential part of a savings plan, but with half of UK workers aged 55 or over feeling unprepared for retirement, it’s important to know if there are any ways you can boost your pension no matter how far away retirement is.
One of the key retirement strategies is simple: compound interest. This will not only help beat inflation rates, but also prepare you for a comfortable lifestyle after you quit the workforce.
With UK platforms paying upwards of 4% per annum (Propiteer Capital’s investment funds offer up to 9.10% pa), investors are proving that property bonds are a popular, no-nonsense choice for growing savings, with several benefits:
- They achieve accumulated interest over the long-term
- They’re fixed income, so you know what you’re getting
- They add variety to and spread risk in your investment portfolio
- They’re generally passive and hands-off
Those over 55 are entitled to draw a tax-free lump sum from their pension of up to 25% of the total fund value, so it’s a good idea to boost the value of your pension as much as you can. If property bonds are of interest, how can you make the most of them in your specific pension scheme?
SIPP – Self-Invested Personal Pension
SIPPs have historically been a great choice for the stock market-savvy investors willing to research enough to know what a good lump sum (and monthly contributions) can do when invested in the right place. Whether its gilts, funds, bonds, or stocks and shares, SIPPs have a variety of investment options that rely on the pension holder being knowledgeable and unopposed to risk. However, in recent years, passive or “auto-investing” platforms have meant that, with just a little research, investors can open a SIPP and trust their investment to a fund manager or platform, with arguably far lighter fees than a financial advisor, whilst still offering potentially high-interest investment opportunities.
SSAS – Small Self-Administered Scheme
For company directors and business owners, SSAS offers flexibility and a wide range of investments as a business and property pension. However, while it’s great to have control over deciding exactly where your pension goes, investing in property bonds through a SSAS is a convenient way to secure your and your member’s future savings into an asset-backed, high yield investment.
Is Your Pension Guaranteed?
Pensions are designed to produce investment returns over the medium to long term. While no investment can be guaranteed, high returns are possible with some platforms. The term times of Propiteer Capital’s asset-backed property bonds vary between 1 and 3 years, with longer terms able to potentially deliver higher returns. As with any other kind of investment, there are inherent risks involved, but the rewards can potentially be a great addition to your pension pot.
To find out more about Propiteer Capital and the available options to invest your SSAS pension, visit our website.
Rates are accurate at the date of publishing. For our latest rates, please visit our homepage.
Recommended Read: Landlords Selling up Buy-to-Let Properties