IFAs should be extremely cautious when promoting government plans to allow people to invest their pension pot into residential property as they could be putting themselves at risk, warns pensions expert Stewart Ritchie.
Inland Revenue's second pensions simplification paper published in December last year suggested people will benefit from an increased investment freedom, including the option to put all their pension savings into residential property, when the implementation of the new regime comes into force. While this might incentivise people to save more for their retirement, it also poses a great risk for both clients and advisers, says Ritchie, pensions development director for Edinburgh-based firm Scottish Equitable. One of the problems with investing in residential property is that the avera...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
