Thursday, 20 July 2017

Buy-To-Let Tax Changes The 'Next Pension Crisis'

The impact of recent changes to the way buy-to-let properties are taxed could create the next pension crisis as individuals are becoming over-reliant on property to fund their retirement years. Seventy seven per cent of landlords say they rely on their investment for their retirement and buy-to-let continues to be viewed as a safe way to save for later life. However, figures from the ONS estimate the average retired household spends £21,770 every year, which leaves a shortfall of more than £15,000 after taking the full basic state pension of £6,359.60 into account. In order to make up a £15,000 shortfall per year would require savings in the region of £300,000, which is why so many people have turned to property to provide for later life. Read more on the NLA website.

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