Lawyers and accountants planning to fund retirement using property investments
The research from lending adviser Bower Private Clients found that 14% of lawyers plan on renting out property to fund some of their retirement, and more than a third (34%) of accountants plan to fund some or all of their retirement using property wealth.
However, nearly a third (31%) of lawyers are not confident about their retirement planning with 14% admitting to be ‘very unconfident’ their retirement plans will work out, the study found.
Andrea Rozario, chief corporate officer at Bower Private Clients says: “Lawyers can be amongst the top earners and can tend to have greater spending power for assets such as property.
“The wealth tied up in homes is a potential source of retirement funding but people who want to remain in their own properties can struggle to access the money efficiently which is driving increasing demand for retirement lending solutions.
“The continuing squeeze on pension and investment income could lead to more lawyers considering how best to maximise what will easily be their biggest asset and look at solutions such as lifetime mortgages.”
The study found one in eight accountants will fund all of their retirement from selling their current home or by relying on investments in buy-to-let and rental income underlining a shift in attitudes to saving for retirement with a fifth saying they have no pension savings.
Unlike lawyers however, accountants are generally confident about their retirement plans, the research shows. More than half (53%) said they were confident, with 21% saying they were very confident and 50% have reviewed their pension plans within the last 12 months.
The average accountant’s retirement will be funded mainly by pension savings. Around 54% have defined contribution pensions and 7% have final salary schemes. On average 48% of retirement funds will come from pensions and 42% will come from property.