Over-40s search for alternative retirement incomes

Consumers are looking beyond pensions to help fund their retirement, with many believing investment in property may be the answer, according to research from specialist mortgage lender Kensington. 

The company conducted a survey of a nationally representative sample of 915 people aged over 40 who are saving for their future. Some 45 per cent said they would consider investing in buy-to-let, while eight per cent admitted they already had. 

Head of sales and distribution at Kensington Steve Griffiths suggested the launch of new pension freedoms has led to a lot of people considering becoming landlords. 

"The fact is buy-to-let is already a strong and growing market with more than 1.63 million mortgages worth around £188 billion, representing around 14 per cent of the total mortgage market and there is plenty of advice available as well as lenders willing to lend," he said. 

Mr Griffiths was keen to warn consumers that it is not the right answer for everyone, and anyone considering such a move should take care to talk to a professional broker and get advice on the tax implications of buy-to-let. 

Another reason people are looking beyond more traditional methods of saving for retirement is because they are unhappy with their pension. 

While the majority (78 per cent) of those questioned said they were pleased they had taken out pensions, 15 per cent admitted to regretting their investments, while six per cent were unsure whether they had made the right decision. 

Recent research by Standard Life revealed there was a 550 per cent increase in people investigating different retirement savings options in the week following the changes to the pension rules. 

The study showed that two-thirds of those aged 65-74 wanted to continue working, at least on a part-time basis during their retirement, and nine per cent of adults aged 65-74 said they wanted to start up a business.