Lawyers look to property portfolios to fund retirements
One-third of legal practitioners are not confident about their retirement plans
Lawyers are increasingly banking on property to fund their retirement plans, new research has shown.
New findings from high-net-worth retirement lending adviser Bower Private Clients show that 29 per cent of lawyers are planning to use funds from their home or buy-to-let properties to fund some or all of their retirement plans.
The research also discovered that 14 per cent of practitioners plan on renting out a property to fund some of their retirement.
However, nearly one-third of those surveyed are not confident about their retirement planning, with 14 per cent admitting to being 'very unconfident' their plans will work out, the study found.
Bower's research showed that on average more than half of lawyers' retirement funds will come from pensions and 44 per cent will come from property.
Lawyers were found to keep a regular eye on their plans, with more than two-fifths having reviewed their retirement plans within the last 12 months.
Andrea Rozario, chief corporate officer at Bower Private Clients, said: 'Lawyers can be amongst the top earners and can tend to have greater spending power for assets such as property.
'The wealth tied up in homes is a potential source of retirement funding but people who want to remain in their own properties can struggle to access the money efficiently which is driving increasing demand for retirement lending solutions.
'The continuing squeeze on pension and investment income could lead to more lawyers considering how best to maximise what will easily be their biggest asset and look at solutions such as lifetime mortgages.'
It was revealed last year that lawyers must save £700 per month from the age of 25 if they are to enjoy the retirement income they want.
Research from financial services specialist Wesleyan found that lawyers need to save the equivalent of £8,400 per year if they are to receive an annual income of £35,680, the amount respondents said they would need to live on in retirement.
The research also found that those who wait until they are 35 to start saving for their retirement will need to make contributions of £1,150 per month, or £13,800 per year.