Book a FREE Valuation › Branches

Could Buy-to-Let Hold the Key to Your Pension?

Coming towards retirement age and looking to get the most from your pension pot?


As of April 2015, savers aged 55 and above are able to withdraw as much of their pension pot as they wish – compared to just a 25% tax-free lump sum as was previously the case. Any amount over 25%, however, will be subject to tax. Therefore, it is important to seek professional advice.

These changes will give you much more flexibility on how to invest your savings ahead of retirement – and, unsurprisingly, many people are looking to the property market to get the maximum return on their pension pot.

According to “This is Money”, Manchester tops the UK table for rental returns based on yield, with the North West being the most lucrative area for annual average rental yields over the past five years. Manchester comes out on top with average annual rental yields over 5 years of 6.02%.

The key to a successful long term buy-to-let investment is finding strong rental yields for income returns and the potential for capital growth from rising house prices over time. Rental yield is calculated by taking the annual rent you get from a property and working it out as a percentage of the property’s market price.

So before going down the traditional routes of savings accounts or annuities when the time comes to cash in your pension, make sure you are aware of all your options and seek appropriate advice.

What are the Benefits of Buy-to-Let for Pensioners?

A bigger return on your investment

With an average rental yield over 5 years of 6.02% in Manchester, a buy-to-let investment offers a significantly higher return than most savings accounts.

Leave an inheritance to your family

When you buy an annuity, most will trade your pension pot for a lifetime fixed income, leaving your family with no legacy. By investing in property, your cash stays in the bricks and mortar for your beneficiaries to sell or continue receiving rental income.

Watch your investment grow

House prices in the North-West increased by 5.6% in 2015, raising the value of buy-to-let investments.

Split your cash for a higher return

Why invest your entire pension pot in just the one property?

By splitting your cash across multiple houses with the use of a buy-to-let mortgage, you can ensure a higher rental income and reduce the impact of any void periods when your property does not have a tenant.

Speak to a member of our Financial Services team for more information on how this could benefit you.

Expert advice to help you buy

The world of property investments is probably not one that many savers have much knowledge of – so don’t step into the unknown on your own. Edward Mellor Platinum is a totally free service designed to help you find, buy, and manage your investment property with help and guidance from our team of experts.
Find out more about our Platinum service

Want to find out more about getting the most from your pension pot? Speak to our team of experts today.

Other guides that may interest you:

Request a call back from our team