What This BOE Economist Had to Say About Property Investment and Pensions May Surprise You

Pensions and property

People who work for the Bank of England don’t often commit themselves when giving their opinions on where we should be saving our money for retirement.

So it comes as a bit of a surprise to read that Andy Haldane, the BOE’s Chief economist has left us in no doubt what he thinks about investing in property according to this article on Bloomberg

One thing I will say is that his view is hardly surprising given what thousands of buy to let investors and landlords already know.

Property beats pensions when it comes to saving for retirement.

This far from revolutionary idea has been the worst kept secret in property investment circles for years.

Having one of the BOE’s chief economists  say it to a Sunday Times journalist will only confirm this to those who still think money is safer in a pension. The reality is pension pots are being steadily reduced while property prices are rising.

His prediction is that UK property prices are set to rise “relentlessly” north and few can argue against it.

Imagine owning an asset or investing in something that continues to increase in value over time while paying you a regular income which is virtually inflation proof. Compare this to putting money in many pensions today and the attractions of the former are obvious.

Then there is the added benefit of being able to leave something behind for loved ones. An annuity will only secure an income while you are alive, leaving you with nothing to pass on.

Gilt yields are already tumbling to new lows following the decision to cut interest rates. Market volatility since the financial crisis continues to hit savings hard whether they are placed in traditional bank accounts or pensions.

Many people will be opposed to Andy Haldane’s view on property, the reality is, nobody is coming out with a convincing argument in favour of pensions.

If you would like to find out more about how property investment can help you save for a better future contact us today.

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