Britons lukewarm attitude to pensions must shift
An expert at the Property Investor Show & OPP Live (14-16 October, London ExCel) believes that Britons are too apathetic when it comes to their own pensions.
This follows a recent survey by YouGov which revealed that over 40 per cent of employees expect their employer should provide access to full financial advice in relation to their pension.
Property Investor Show & OPP Live SIPP expert Guy Tolhurst, managing director of Intelligent Partnership finds this lukewarm attitude towards pensions alarming.
He says: “With an increasing number of small businesses not offering pension schemes to its staff due to cost, a rapidly growing self-employment rate and the ongoing rise in the cost of living, the need for a financially robust retirement plan is essential.
“With less than half of the UK population possessing a current pension plan, employees need to sit-up and take responsibility for their own future. Over 40 percent of the population will rely solely on a state pension and many have completely unrealistic expectations about the income they will receive during their retirement years.
Shocked about their prospects for retirement, over 500,000 people in the UK have already taken direct charge of their pensions through a SIPP. This figure is now expected to rise to more than 3 million within the next two years.
Mr Tolhurst continues: “Through a Self-invested Personal Pension (SIPP) you can invest in a range of income generating or growth orientated asset classes to maximise your retirement benefits. A SIPP enables someone to take more control over their pension and investments, simplifying and combining frozen or non-performing policies into one manageable retirement pot.”
There are the same tax benefits with a SIPP as with a traditional pension. Tax relief of up to 40 per cent can be claimed on the contributions made. Within a SIPP any ongoing pension contributions can be altered based on personal circumstances.
A low-rate taxpayer could realise a discount of 20 per cent when buying a commercial property such as an apart-hotel room within their SIPP, coupled with no capital gains tax to pay when they sell it.
Participants in the SIPP Zone, exhibiting at The Property Investor Show & OPP Live have arranged over 850 SIPPs for clients in the last 18 months.
Almost without exception, these SIPPs are being set up by people who are unhappy with performance and fees, want to consolidate and control their plans and choose how their money is invested. Many are very unhappy with ‘the traditional approach’ and are looking towards alternative investment ideas to try to maximise their retirement income.
Investors wishing to find out more should visit the dedicated SIPP Zone at The Property Investor Show & OPP Live, the only major property investment event taking place in the UK this autumn.
With over 175 exhibitors, investors will have a chance to access everything from UK and International real estate opportunities through to residential property funds, investment networks, hotel room investments, eco-friendly properties, alternative investments, utility discounters and even landlord advisory services.
Highlights for this year’s show include lodge and holiday home investment, live auction, alternative investments, AIPP exhibition zone, luxury real estate and SIPP Zone. In addition, the show will be host to 40 seminars, debates and workshops providing investors with the opportunity to identify the expertise and advice needed to make the right decisions.
Whether property industry professionals, seasoned investors or just getting started, property investors will find something of value at the Property Investor Show & OPP Live running from 14-16 October 2010 at London ExCel.
For more information visit: propertyinvestor.co.uk/london