When you have spent forty plus years working hard to secure a decent retirement fund for you and your spouse, it can come as a real shock to find that your pension is incapable of giving you a comfortable income, and in some cases, barely any income at all. So, given the current economic situation, it is not surprising that more and more people are choosing to invest their extra cash in the rental property market, hoping that when they finally hang up their work boots forever, their smart investment will help them enjoy the little extras in life.
So will your investment portfolio pay for a few round-the-world-cruises, or should you increase your pension contributions instead?
Investing money in rental property might seem like a good idea, but it is important to remember that becoming a landlord is not as simple as you might think. Whereas the money you pay into a pension plan requires very little of your attention on a day-to-day basis, administering rental properties can be a full time job if you have more than one or two.
If you think of property investment as a small business, you would not be too far wrong. There are many rules and regulations to adhere to, not to mention responsibilities to your tenants, so it is a good idea to do your homework before ploughing all your retirement funds into property investment. However, becoming a landlord is an excellent way of bolstering up an existing pension fund and providing you with greater financial freedom as and when you retire.
