Architect To Your Own Retirement
Created in 2005 by the Union International des Architects (UIA), World Architecture Day is a day to show appreciation for the work architects do and to celebrate some of the great global architectural works. Architecture is incredibly important and architects have the potential to shape all of our lives through their hard work.
In this country, we have a rich history of great architects (from Sir Christopher Wren, Inigo Jones, Sir John Soame to Norman Foster and Richard Rogers) and brilliant buildings (from St. Paul’s to the Gherkin). We also have a British obsession with bricks and mortar. One of the reasons that people have chosen to cash in their pension pot at age 55 is to invest in property. People chose a high fee, taxed with periods of zero growth or income investment (i.e. a property) in place of a tax-efficient, low charged pension scheme.
Here are some rehashed property vs. pension issues:
- Your employer pays into a pension but not into your property investment – if you take your pension contribution as salary you pay National Insurance on the money.
- You get tax relief on your pension contributions where as your “contribution” into the property is after tax.
- The maintenance costs plus agents fees (or the cost in your time) are considerably higher than 0.75% per annum.
- There is capital gains tax to pay on the growth in value of an investment property.
- The damage done by an errant tenant can be costly compared with the lower returns by a poor performing pension fund.
Why have pensions got their “PR” so wrong compared with property?
Roll on World Pensions Day!