I moved 80% of my pension savings into gold coins for retirement

Samantha Nelson has put around 80 per cent of her savings into physical gold as part of her retirement plans after becoming concerned about relying too heavily on cash savings.

The interior designer, from Surrey, began looking at alternatives after selling a flat and finding herself with a substantial amount of money sitting in the bank.

While she already had savings in an ISA and a workplace pension, she wanted to diversify part of her wealth into an asset she could physically own.

Shorts

Speaking to The i Paper, she said: “After selling a flat, I had money sitting in the bank and began thinking more seriously about how to diversify my savings as part of my long-term planning.

“I wanted to move some of it into a physical asset I could hold for the future, rather than leaving it entirely in cash.”

Her decision reflects a broader interest among some savers in alternative assets as they look beyond traditional savings accounts and pensions for retirement planning.

Gold has attracted growing attention from investors recently amid geopolitical tensions, inflation concerns and uncertainty in financial markets.

The precious metal, which is often viewed as a safe haven asset during periods of turmoil, has surged over the past year despite recent volatility.

It has been trading at around £3,100 per ounce in recent times, up sharply from a year ago, although prices have fallen back from record highs reached earlier this year.

Analysts say conflict in the Middle East alongside central bank buying and concerns over inflation, have all helped drive demand for the metal.

Samantha said concerns about the long-term value of cash savings played a role in her thinking. Interest rates on her ISA had fluctuated significantly over time, making her more aware of the limitations of relying solely on cash.

She said: “My ISA currently pays around 4 per cent interest, although in previous years it was closer to 1.7 per cent, which at the time was still considered a good rate. That experience made me more aware of how variable and limited returns on cash savings can be over the long term.”

Rather than increasing pension contributions or investing more heavily in shares and funds, she opted for physical gold coins.

Samantha added: “What appealed to me most is that gold is tangible. I can hold it, store it, and sell it if I need to, which gives me flexibility and reassurance.”

“I also value the independence it offers from traditional financial systems. Gold has historically been viewed as a long-term store of value, which was a key factor in my decision.”

Buying gold – how it works

She first became interested in gold after reading an article online and subsequently contacted a bullion dealer to learn more about the market and the process of buying physical gold.

Part of the attraction was the tax treatment of some coins. She explained: “Certain UK legal tender coins such as Sovereigns and Britannias are typically exempt from capital gains tax and VAT-free, which can be beneficial for long-term returns.

“I also have concerns about the increasing move towards a more cashless society. Having part of my savings in physical gold gives me reassurance, because it’s an asset I can hold, control, and sell independently if circumstances change.”

The investment was funded using proceeds from the sale of her flat, with purchases spread over several months rather than made all at once.

Her first purchase consisted of four 1oz gold coins worth around £20,000. She later bought two more coins worth around £8,500 before adding a further £10,000 in April and £17,000 in May.

Overall, she estimates that around 80 per cent of her savings are now held in physical gold.

Her collection includes coins from The Queen’s Beasts and Tudor Beasts series, as well as a Lion and Eagle coin produced in collaboration between the US Mint and The Royal Mint.

Before committing, Samantha said she wanted to understand exactly how the market worked.

She said: “I visited Britannia Bullion’s office and met their market experts, who explained how physical gold works as a long-term asset. Speaking directly to the team gave me confidence in the decision.

“While it’s encouraging to see movements in the market, I’m focused on the long term rather than short-term fluctuations. This is part of my retirement planning, not a speculative investment.”

Instead, she sees the coins as one part of a broader retirement strategy that also includes her pension and cash savings.

She can track the value of her holdings online and through an app, but says the main attraction is the security of owning a physical asset that can be sold if needed.

Looking ahead, she said: “My plan is to hold the coins for around 10 years as part of a broader retirement strategy. What matters most to me is having part of my savings in a tangible asset I can track over time.

“If, in 10 years’ time, the investment has helped preserve and potentially grow the value of my savings while giving me peace of mind, I’ll feel it has done its job.”