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What to spend your pension on Home / What to spend your pension on

What to spend your pension on

In April this year there was an important legislation change allowing full access to pensions from the age of 55. You may remember the media noise surrounding this at the time

Now the dust has settled on the news story, let’s have a look at some practical ways to invest.

Business

You’ve dreamed of retirement, but now it’s here you’re restless. If you’re not quite ready to put your feet up, consider starting a new business, that big idea you had in your youth. Now you’re full of life experience and in a financially stable situation, it might be time to take the plunge.

The beauty of owning a business is the power to retain as much control as you wish. Since you’re retired it’s not actually necessary to work at all, so you’re free to give the majority of control to others, or use work to bridge the gap between full time employment and retirement, gradually loosening the reins.

In the current economic climate employment is hard to come by, especially for young people stuck in the catch-22 of not having enough experience and nobody willing to give them a chance to gain the valuable experience that will benefit them. Creating jobs for younger relatives may be a better gift than simply handing over money; here’s something they can develop themselves, and earning an income will be the motivation and incentive to make it a success through participation and hard work.

The potential success of a business is infinite, and if your family are a wise bunch it’ll assure their future financial security. The extra income is an attractive prospect, too!

Franchise

Less risky than building an independent business, you’ll be associated with an already established brand. Typically coming with  guidance and support on matters ranging from site selection and builders to outlet design and equipment purchasing, franchisors may also provide initial management training and perks including advertising and merchandising assistance and access to financing packages which may be more appealing and easier to access than for non-franchise businesses. There is a price to pay for the extra stability (ongoing payment fees to the franchisor) but weighed against the value that comes with buying into an established brand, it’s a sound option.

Property

Now the kids have flown the nest perhaps you want to downsize, or simply splurge just because you deserve it.

If you want to accumulate extra assets, investing in property for the purpose of renting can produce a steady income to supplement the money put into property.

A holiday home can be used in the same manner, with property abroad still a steal post economic downturn. With the market beginning to find its footing again, this is an excellent time to make an investment on a property which will increase in value once the market has stabilized.

It’s also a great way of regularly bringing the family together, and you’ll always have an excuse for a holiday!

Best of both worlds is to invest in a Property franchise such as Go Direct Lettings. Investments made in property can be funnelled back into your franchise company creating more residual income. And with Go direct lettings being a young company you may even be able to influence the future direction and growth via the regular training and update meetings.

For more information on how this works, get in touch.

You’ve worked hard over the years, now it’s time to reap the rewards. There are plenty of avenues to explore, from investing in a portfolio of stocks and shares (to spread the potential for loss – and profit) or going into business with a long-time friend. However you choose to spend your pension, take the time to research and weigh up your options, risks – and potential. 

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