Retirement planning is all about securing your financial future and creating a comfortable lifestyle in your golden years. One exciting way to do this is by using your pension to purchase property! This unique strategy can provide you with a range of benefits that can help you live your retirement dreams to the fullest.
But the benefits of using your pension to purchase property don’t stop there. Here are some of the key benefits of using a pension to purchase property:

Long-Term Investment: Property is a long-term investment that can appreciate in value over time, though there may be periods where property values fall. Using a pension to purchase commercial property can provide individuals with a valuable asset that can generate income and appreciate in value, providing a valuable source of retirement income comfortably in their golden years as long as tenants are occupying the property and paying the rent.

Control Over Investment: By using a pension to purchase property, individuals have direct control over their investment, giving them the ability to make decisions about their property and its management. This allows them to have a direct say in how their investment is managed, ensuring that their retirement savings are being used in the way they want.

Estate Planning: Using a pension to purchase property can help to diversify an individual’s portfolio, reducing their exposure to market risks. By investing in both stocks and property, individuals can reduce the impact of market fluctuations on their retirement savings.

Diversification: Pensions typically offer tax advantages, which can help individuals to maximise their retirement savings and reduce the amount of tax they pay on their income. Personal contributions into a pension can attract tax relief at the highest marginal rate (up to 45% for additional rate tax payers) and with Corporation tax increasing to 25%, this provides businesses with a significant tax benefit.

Increased Income: Using a pension to purchase property can provide individuals with a steady source of income, as they can rent out the property to tenants. This can help to supplement their retirement income, ensuring that they have the funds they need to live.

Tax Advantages: Pensions typically offer tax advantages, which can help individuals to maximise their retirement savings and reduce the amount of tax they pay on their income. Personal contributions into a pension can attract tax relief at the highest marginal rate (up to 45% for additional rate tax payers) and with Corporation tax increasing to 25%, this provides businesses with a significant tax benefit.

Legacy Creation: Using the right pension, assets can be passed on to loved ones as a nominee pension, which means that assets can be passed down from one generation to the next, potentially free of inheritance tax.

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If you are prepared for the risks identified below, using your pension to purchase commercial property can provide you with a unique opportunity to live your retirement dreams. With the right strategy and a bit of planning, you can create a lifestyle of comfort, security, and financial independence.

Speak to Trusted Wealth today to determine if using a pension to purchase property is the right choice for you and to ensure that you are taking advantage of all the benefits available.

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