A new report has claimed that pensioners in the UK now have more investment opportunities than ever before thanks to the recent pension rule changes. As a result, many are turning to property instead of annuities, shares and bonds.
According to the latest Global Real Estate Outlook report from property investment company, IP Global, property remains a far more attractive and stable long-term investment option when compared with investments in the stock market.
Pensioners were given full control of their retirement savings in April, as part of one of the biggest ever pension shake-ups. Since then some 70% have chosen to drawdown all or part of their retirement wealth, with domestic and international property the most popular avenue for investment.
A clear price surge has been witnessed in Berlin, which saw a 10.1% increase, and the central wards of Tokyo, according to IP Global’s research.
Furthermore, increased rental demand in cities such as Brisbane means that investors can expect a yield of 5.4% per year.
With the British pound strong against the Euro and Japanese Yen, UK investors can secure not only far more favourable buying prices but a steady, continued income as well.
On the domestic front, London (unsurprisingly) and Manchester are leading the way, with prices rising by 12% in Greater London in the last twelve months. A new property in Manchester is still valued at less than half the average seen in the capital – however, prices are anticipated to rise to narrow this gap. Recent projections have put Manchester price growth at a very impressive 26.4% up to 2019.
As they decide how to make best use of their pension pot, there has been a sharp increase in demand from pensioners for experienced and qualified advice on what retirees can do with their savings since the new found freedoms were introduced.