Plonkee has written a couple of brilliant articles this week comparing the pros and cons (and maths) of funding your retirement with a pension or buy-to-let properties.
The maths is pretty complicated but also intriguing; in her calculations, the buy-to-let option comes out on top, although she concludes that the risk is naturally greater, and the involvement one needs is probably also more than with a traditional pension.
Buy-to-let is definitely a “sexier” retirement vehicle, and I’m all for making pensions more interesting if it means that people who wouldn’t consider one are now more likely to, but I personally think they should only form a small part of your retirement planning, and that’s if you’ve got the time and inclination to invest in them. Whilst I’d like to think I’d be able to afford to add some buy-to-let properties to my retirement portfolio in the future, the reality is that I’ll probably have to stick to funds.