By Mike Holt
The Landlords Pension have helped over 1,000 company directors and property investors take control of their pensions and invest them into property in various ways.
At The Landlords Pension we speak to property investors all over the country who are at various stages of their property journey. One thing we find is the fact that the vast majority of these people took the decision to invest in property as a way to ensure that they had sufficient funds available to enjoy their retirement when the time came. This is a recurring theme and most would prefer to be sooner rather than later.
Many of our clients have or had successful careers in the corporate world and enjoyed benefits such as company pensions or personal pension schemes hoping that either or both of these would produce the income desired in retirement.
In reality and on further inspection, it soon became apparent to them that what they had in place would not produce the results that they had hoped. Hence the decision to take action and invest in property to ensure they would indeed have the means to retire in the manner they desired.
What is a concern is one of the main drivers for their decision to invest in property (their existing or frozen pension funds) is retained and not utilised to invest in property or grow their business. There may be a few reasons for this.
Firstly, some people are not aware they can take control of their company or personal pensions and make the decisions on where these are invested themselves. Secondly, some wrongly believe they have to be 55 or over to take control of these funds; finally, that it is difficult and expensive to take this course of action, which is simply not the case.
If you are a company director, you can take control of your pension funds at any age and move these into a pension scheme over which they have the control and flexibility to invest in property in one way, shape or form.
A Small Self – Administered Scheme (SSAS) pension allows the individual to directly purchase commercial property or land through the pension.
Even allowing the ability to leverage the pension funds to increase purchasing power. You can make a loan from your pension fund to your company to grow your business or increase your property portfolio. You have a greater choice of investment options including the ability to invest in a completely hands-off property bond which offers a fixed return/fixed term investment with the security of a 1st legal charge over physical property.
Ultimately if you are a company director who wishes to take control of existing or frozen pension(s) which will give you the ability to grow your business and/or invest in property, then there is a very straightforward, cost-effective way in which you can achieve this at any age.
To find out if you qualify for a Property SSAS pension you can take our 60-second eligibility test here: https://www.thelandlordspension.co.uk/test
Or download our Free Property SSAS guide here: https://www.thelandlordspension.co.uk/freedownload