Is Property the best investment?

Multi-colored model-like terraced houses. Longyearbyen, Svalbard, Norway.

For many years people have questioned whether property or a pension is better when saving for retirement. The argument was given new life when one of the Bank of England’s top economists, Andy Haldane, recently claimed buying property is a better investment than saving into a pension.

Perhaps now is the time to consider the myths about property and pensions and look at the numbers, to work out which has been the better way of investing for retirement over the past 25 years.

As we age, we tend to develop a strong attachment to the home where we have lived most of our lives, making it very hard to consider moving from a house to a little flat that may be far away from our friends, family and grandchildren. This makes the plan to downsize impractical for most.

The attraction of Buy to Let has all but been extinguished by UK Government legislation, which has eaten into returns and, in some cases, resulted in more tax being paid than profit made!

Planning for retirement requires access to money in retirement to pay for your lifestyle as your employment income stops. The illiquid nature of property makes it generally unsuitable as you can’t take a few bricks to the supermarket.

The attractiveness of pensions has grown through successive reforms and for now, the attraction of tax relief provides superior returns to property whilst maintaining all important liquidity and flexibility.


This article provides an overview of why pensions not property provide the best way of providing for a secure retirement. For a more detailed analysis click here.

In our complicated and confusing world, it is vital to ensure you have the best, and most suitable pension, to match your needs coupled with an effective investment strategy.

You should have a Pension Audit to take stock of your retirement plans and make sure that you are on track for the retirement you want.

To arrange your no obligation Pension Audit contact your AAM Financial Planner or email now.

Ian Black
Head of Wealth Solutions
AAM Advisory Pte Ltd


Land Registry, Registers of Scotland, Land and Property Services Northern Ireland and Office for National Statistics

This article is an op-ed piece by Ian Black. The views expressed in this article are those of the author and do not necessarily reflect the views of AAM Advisory Pte Ltd. This document/article should not be construed as an offer, solicitation of an offer, or a recommendation to transact in any securities/products mentioned herein. The information does not take into account the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a licensed financial adviser regarding the suitability of the investment product before making a commitment to purchase the investment product. Past performance is not necessarily indicative of future performance. Any prediction, projection, or forecast on the economy, securities markets or the economic trends of the markets is not necessarily indicative of future performance. Whilst we have taken all reasonable care to ensure that the information contained in this document is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness. Any opinion or estimate contained in this document is subject to change without notice. The above report may contain data obtained from third parties and as such we cannot guarantee the accuracy of this data.