Pensions - Articles - Buy-to-let warning shows worth of varied retirement income

 The fact the Treasury is collecting an additional £200 million suggests that at least some of those accessing their pension under new freedoms are taking more than the 25% tax free sum with some cashing in their entire pension savings. It’s understandable that people would want to access lump sums for a buy-to-let investment, but today’s warning acts as a reminder about the importance of diversifying sources of income in retirement and not putting all your eggs in one basket.

 The irony here is that while low interest rates have attracted money towards buy-to-let, as these rise traditional savings products will start looking more attractive, at the point where some borrowers may begin to struggle to make mortgage repayments.”