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.
