Retirement crisis looms: How investing in art can secure your future.

E conomists are reporting that there is a high chance of an impending retirement crisis. A variety of factors are amassing to create a perfect storm resulting in the affordability of retirement becoming more and more unattainable. CEO of BlackRock, Larry Fink has warned that the world is sleepwalking into a retirement “crisis” as housing and living costs skyrocket. With UK inflation rates shocking economists by staying above 10% in March, the cost of living crisis shows no sign of slowing down. Further to the cost of living crisis, the UK retirement age is set to rise to 70 by 2050 and 9 in 10 workers are saving less than needed for a decent standard of living. The forecast for future retirees seems bleak.

“The last decade or so has seen state and private pensions deliver much better outcomes for many pensioners. But there is a risk this has bred complacency among policymakers,” – Paul Johnson, IFS director

The cost of living crisis has been burgeoning since 2021 and has profoundly impacted the daily lives of millions. However, the crisis is also impacting on people’s futures. With everyday living costing more and more, workers are left with less to put away for retirement. Not only this but the increased living costs along with rising inflation means that retirees’ pensions aren’t able to stretch as far as they once did. Affordability has been impacted to such a great level that the minimum required to survive as a single pensioner in 2022 jumped by 18%. To make matters more daunting, it has been reported that the number of pensioners who rent their homes is set to double in a decade, furthering costs and reducing affordability, especially with rental costs rising rapidly.

So, what can be done to ensure that retirement is not a time of financial struggle, but a time of enjoyment and relaxation? One option is to consider investing in art. Art has been a popular investment option for centuries, and for good reason. Art is not subject to the same market forces as stocks and bonds and has proven to be a stable investment in times of economic uncertainty. In fact, art has outperformed the S&P 500 over the past 25 years.

One of the biggest advantages of investing in art is its potential for capital appreciation. While stocks and bonds are subject to fluctuations in the market, the value of art can appreciate over time, making it a reliable investment for those looking to secure their financial future. In fact, research shows that the art market has consistently delivered returns over the long term, often outperforming other traditional investment options.

Moreover, investing in art can also provide an opportunity for diversification. It is important to diversify your investments to spread out your risk and protect your portfolio against market volatility. Art can be a unique asset class that helps to balance out your investment portfolio, as it is not directly correlated to the performance of other assets.

Investing in art can also be a smart choice for those looking to leave a legacy for future generations. Art can be passed down from generation to generation and can appreciate in value over time, providing a lasting legacy that can benefit future heirs.

Of course, it is important to note that investing in art requires careful research and consideration. Before investing, educating yourself about the art market and seeking advice from professionals, such as art advisors and auction houses, is important. It is also important to consider factors such as the artist’s reputation, the rarity of the piece, and its condition.

In conclusion, the retirement crisis is a growing concern for many individuals, but investing in art can be a smart way to secure your financial future. Not only can art appreciate in value over time, but it can also provide a sense of enjoyment and fulfilment. However, it is important to approach art investment with caution and seek professional advice before making any significant investments. By taking the time to research and educate yourself about the art market, you can make informed decisions and take steps towards a more secure retirement. Discover art investment here.