A recent survey from the Office of National Statistics has revealed that more and more pensioners are turning to property investment in order to help line their retirement funds.
The figures from the survey show that the number of people over the age of retirement, who are still working, has doubled from the 1993 figures; and one of the most popular job titles registered by over 65s was “property manager”.
The number of pension-aged landlords who rent property out has risen by a whopping 11% in 2012, and the total has risen by 33% since 2009 and the suggestion is that many pensioners are using their pension savings, which have been hit by falling interest rates in recent years, to buy property with, using property as a long-term investment.
This trend may come as a surprise to some, especially during a recession where the housing market has almost completely collapsed, however, renting is still reasonably strong and, according to Jason Stockwood, of Simply Business, renting out property promises “steady returns” for pension-aged landlords.
According to Stockwood, many retirees are therefore deciding to keep hold of property, even if they are downsizing or moving in with relatives, in order to rent the property out for additional retirement funds.
By contrast, the number of landlords between the ages of 18 and 25 has fallen rapidly from the figures associated with the same demographic back in 1993.
The research also shows that, out of the landlords over 65 who have been renting out property, over two-thirds of them have been doing so for more than three years, demonstrating that many pensioners are seeing property investment as a long-term solution, rather than a short-term top up, to their pension investment worries.