How Income from Passive Investing Can Support Your Retirement Pension
Passive investing for retirement pensions
Retirement planning can be a daunting task, especially when it comes to your pension. Whether you’re nearing retirement age or still a way off, it’s never a bad time to take your retirement pension seriously to ensure you’re as financially secure as possible when you’ll need it most.
Retirement funds can mean anything from investment portfolios to compounding returns. For inexperienced investors, a financial advisor or wealth management firm can help clear things up with professional insight. For those with a deeper understanding of pension planning who are looking for the perfect passive investment opportunity, Concept Capital Group is here to help.
What Exactly is Passive Investing?
Passive investing is an investment method that relies on a buy-to-let portfolio strategy to achieve long-term returns. While other investment strategies can involve riskier methods like market trading, passive investing uses index investing, which is often weighted based on market capitalisation. Passive investments often involve property due to their relatively low start-up cost and minimal need for oversight.
What’s the Goal of Passive Investing?
Passive investing is all about maximising returns by minimising the amount of buying and selling involved with your asset. Rather than forcing you to actively accrue capital for your retirement pension, a passive investment would let other market operators take care of the hard work for you.
If trading stocks is based on the idea of ‘no risk, no reward’, passive investing is more a matter of ‘slow and steady wins the race’. There are arguments for both, but passive investments allow you to build wealth without requiring a commitment of time and effort or inviting major losses.
When Should I Invest in my Retirement Pension?
There are no wrong answers to the question of retirement planning.
The average life expectancy for the average 65-year-old in 2022 was another 20 years, and 1 in 10 people in the UK is expected to reach the ripe age of 100 according to the Office of National Statistics. Most experts suggest saving for your retirement pension as soon as you’re in your 20s, but factors such as a fluctuating job market, stagnating wages and rising housing costs have made saving a bit trickier than it used to be.
The good news is that any amount of investment will make your pension pot bigger and support your retirement. Building your retirement investment portfolio in your 50s can still be a net positive for most, provided they make informed decisions. Do you have the time or the inclination to actively manage a stock portfolio? And, if not, do you have the resources to pay someone to handle those responsibilities for you? If not, passive investment could be your best choice.
The Benefits and Advantages of Passive Investing
In addition to the lower risk and complexity compared to other forms of investment, passive investing has a range of benefits that make it ideally suited for retirement pension planning. These include:
- Lower Fees
There’s no need to find an analyst or a portfolio manager, so your overhead is usually less expensive
- Lower Maintenance
You don’t have to track the performance of your investment regularly due to asset stability
- Steady Returns
Passive investments traditionally outperform active investing in long-term profitability
- Transparency
Stock markets can be confusing or unclear to some investors. Passive investing guarantees that you will always be aware of your assets, whether they’re in use and how profitable they are
- Tax Efficiency
Buy-to-let strategies rarely result in significant annual capital tax gains
- Simplicity
Passive investing is more accessible and easier to understand compared to active investing, which requires an understanding of a constantly fluctuating market and portfolio adjustments to math those fluctuations
- Safety
Passive investing is low-risk, requiring fewer start-up costs and being less prone to catastrophic losses
Passive investments, and especially passive property investments, are well-suited to first-time and experienced investors alike. They reduce several of the risk factors that keep people away from investment opportunities while continuing to boast qualities that make them a potentially lucrative source of income.
What Are the Best Passive Investment Opportunities?
There are many routes to becoming a passive investor, most of which have entry points that are very accommodating towards new and casual investors. Index and exchange-traded funds, for example, can quickly help you build a diverse, low-risk portfolio from scratch.
For passive investment that blends low engagement with tangibility and stability over time, property has been an investor favourite for good reason. In times of economic downturn, property investments protect against inflation by rising in value alongside the price of goods and services. As an ethical investment, affordable housing goes a step further by addressing key social issues such as homelessness while also having an even lower initial cost that makes it an easy choice for first-timers.
At Concept Capital Group, we have carefully tailored our product to offer investors sustainable, safe properties designed to provide affordable alternative housing solutions through prefabrication. Our properties have a significantly higher annual yield than traditional buy-to-let opportunities at 10%, with guaranteed monthly rental income through government-backed tenancy matching. Our management services handle the day-to-day of tending to the property and its tenants and, when your contract expires, our team will even be on hand to explore the exit options you’ll have to sell your home. The effortlessness at the core of our service allows investors to make the most of their initial buy-in without being overwhelmed by the duties that stem from being a landlord.
In other words, we make passive property investment even easier and all the more accessible for everyone involved.
Concept Capital Group Makes Passive Investing Simple
At Concept Capital Group, we offer clients a source of passive income that takes their initial investment and puts it towards a growing market with the future of local communities at its core. Our team specialises in the manufacture and management of affordable prefabricated housing solutions. We provide a hassle-free source of passive income for our clients by overseeing the tenancy and maintenance of the properties they purchase from us so they can enjoy all the benefits of property investment with none of the time-consuming responsibilities.
With interest and mortgage rates on the rise, affordable housing is positioned to become an increasingly relevant area for passive investment. Not only do they give investors a consistent source of passive income in a market where supply struggles to meet demand, but they also provide vulnerable people with access to secure housing, making it a highly ethical investment opportunity.
To learn more about passive property investment and how we can help you achieve it, reach out to us today to talk to one of our sales consultants.
How Do I Start Passive Investing with Concept Capital Group?
If you’re ready to learn more about passive investing in the UK and breathe new life into your retirement planning, you can contact the team at Concept Capital Group today. We’ll talk you through the process behind investing in our properties and give you more insight into where your money goes to ensure a future of hassle-free returns.
