When you’ve been working your whole life, you often do so in the hope that one day you will be able to retire – that when your body is old and tired, you will be able to relax into your old age and let your pension take care of you. We hope then that our pension scheme will be able to take over and that we will be able to forget all of our previous woes such as working to pay off debt and keep our properties, and can instead spend our remaining days pursuing holidays and reading up on things that interest us.
Unfortunately this isn’t always the case any more and the media is currently full of stories where the elderly are left unable to get their pensions because their private pension companies have been forced to close, or because they discover their state owned pensions aren’t actually worth anything. This leaves those unfortunate individuals living in poverty, or unable to pay off their rent, or even having to continue to work into old age.
At times like these then it makes sense to take matters into our own hands and to look at ways we can provide for ourselves in our old age. Fortunately there are many alternatives to a private or government pension which could actually be worth more to us and be more secure. This then enables us to pay off all our debts – including our mortgage – and to enjoy a high standard of living in old age.
One great way to do this is to invest in properties, and the more properties you’ll have the more secure you’ll be financially in old age. This works as a pension plan as properties very rarely lose their value and in the vast majority of cases in fact increase in value. As they are worth so much to begin with, this means that you can sell a property when you retire and that will leave you enough profit to live off and to pay off all outstanding debts. If you have several properties then you can sell these off every few years and get regular injections of cash.
Another added bonus of investing in properties rather than pension plans is that this will enable you to lease your properties and that will give you a steady income that will be similar to a salary. If you’ve paid off all your existing debts then rent from one or two properties will be more than enough to live off and this is on top of the money you’ll make when you sell the properties. Your tenants will maintain the properties for you while living in them, and if you don’t like the hassle involved in being a landlord then you can go through an agency who will handle all the logistics for you – you just get the profit.
The interest you gain on these properties will also be greater in many ways than the interest you gain on a traditional pension scheme as you are simply ‘cutting out the middle man’. All pension companies do is to take your money and invest it in properties and businesses and then give you your money back with a cut of their interest when you retire. If you invest your money yourself in properties etc then you get 100% of that interest to live off of and to pay off your debts. Finally, if you were to be involved in an accident or to get ill before you had claimed much pension, you wouldn’t lose the investment but could rather pass it to your children or grandchildren and help them to pay off their debts instead.