We used our pension to buy a cottage in Cornwall

WHEN Alan Roberts retired, he withdrew a 25 pc tax-free lump sum from his pension to buy a holiday cottage in Lelant, near St Ives, Cornwall, with his wife, Julie (pictured inset), to boost their retirement income.

The former civil servant says: ‘Julie’s family are from Cornwall, so we always went there on holiday. It has a spectacular coastline, beautiful beaches and lots of heritage, so we thought setting up a business near St Ives would be a great idea and we could have free holidays.’

The two- bedroom, semidetached cottage was already a holiday let when Alan, 72, and Julie, 66, from Malmesbury, Wiltshire, bought it in June 2011. The furnishings were included in the sale, so it didn’t take long for them to get it up and running.

Alan and Julie, a retired administrator, use property agent Aspects Holidays to market Grebe Cottage. The agent takes 18 pc commission from each booking the couple receive. In return, the company advertises the property on its website and in magazines, shops and travel agents in tourist towns and villages such as Padstow and St Ives. The couple charge between £420 and £1,100 a week depending on the time of year, and make around £6,000 profit a year.

Alan says: ‘We love having the cottage. It’s done very well since we bought it. The money goes towards our daily living and helps with the luxuries, too. And we enjoy staying there for our own holidays. In August we are having a big gathering in Cornwall with Julie’s family. There will be about 14 of us and some of our nieces and nephews will stay at the cottage.’