Let’s say you’re 43 now and aiming to retire around 60–65. That gives you roughly 20 years to turn your money into a steady, reliable income.
Step 1: Know Your Target
First things first - what does a “comfortable retirement” mean for you? For most, it’s about having a paid-off home, no debt, and around £25k–£40k a year coming in after tax. Ideally, a chunk of that comes from rental income so you’re not fully dependent on pensions or savings.
Ages 43–48: Start Building
This is the time to start stacking bricks…no, really. With about £100k saved or in equity, you can pick up one or two buy-to-let properties in up-and-coming areas (think parts of the North West or Midlands). Use 75% mortgages to stretch your capital and look for properties that give you 6–7% rental yields.
If you’re busy working or don’t fancy chasing tenants, consider using a letting agent. The goal here is to build equity and cash flow while keeping things fairly hands-off.
Ages 48–55: Expand or Fine-Tune
Once your first investments are ticking along, it’s time to decide; grow or optimise?
You could remortgage to release equity and buy another property. Or maybe give an existing one a refurb to boost rent. Some investors explore HMOs for better returns, though they do come with more management.
Also, this is when tax planning starts to matter more. Owning property through a limited company can have perks—especially since personal mortgage interest relief took a hit post-2017.
Ages 55–60: Trim and Tidy Up
As retirement approaches, the focus shifts from growing your portfolio to simplifying it. Think about selling one or two properties, clearing any remaining mortgages, and holding onto the ones that bring in the best income.
Use those sales proceeds to top up your pension, invest in ISAs, or just give yourself a financial buffer. And don’t forget about capital gains tax—spread out any sales and use your annual tax allowance to keep more of your profits.
Ages 60–65: Enjoy the Rewards
By now, your efforts should be paying off. With one or two well-chosen properties, mortgage-free and generating steady rent, you could bring in £1,800–£2,500 a month. Add in your state pension and any private pensions, and you’re well on your way to that comfortable, stress-free retirement.
Property can be a powerful part of your retirement plan—even if you’re getting a slightly later start. The key is timing: use your 40s and 50s to grow smart, then spend your 60s reaping the rewards. Keep it simple, plan ahead, and let your investments do the heavy lifting.
Need help building a personal plan? Or a calculation to see how far your savings could go? Get in touch with us at at Elavace and we’ll be happy to help.
