Pixalo Photography Community - View Single Post - Stuff the pension, going for property investment

stevegreen · 23-03-2007, 11:58

The company I work for has just announced that they will be stopping the final salray pension scheme at the end of June, so now I will have 2 pensions, one based on my first 18 years at final salary and then the remainder that I pay in at a defined contribution rate.

I am currently thinking that i should be paying as least as possible into the DC scheme as the company puts in 8% of my pensionable earnings anyway, even if I only contribute a small amount.

Property is certainly a good bet at the moment (and I stress at the moment) and I am lucky enough to have been divorced at the right time to make a killing on a flat that I bought. My main pension, as far as I am concerned, is in a property that I rent out which hopefully will enable us to live very comfortably when we decide to sell it and retire. I personally don't think that any pension will be worth that much at retirement age (and thats if I even get to the age to take it) so planning for earlier retirement and being comfortable and happy is the priority.

Renting out property is fine, as long as you can afford to cover the mortgage if it is empty for any period of time.

23-03-2007, 11:58	#3 (permalink)
stevegreen Getting Comfy Join Date: Aug 2005 Location: Shropshire Posts: 212	Re: Stuff the pension, going for property investment The company I work for has just announced that they will be stopping the final salray pension scheme at the end of June, so now I will have 2 pensions, one based on my first 18 years at final salary and then the remainder that I pay in at a defined contribution rate. I am currently thinking that i should be paying as least as possible into the DC scheme as the company puts in 8% of my pensionable earnings anyway, even if I only contribute a small amount. Property is certainly a good bet at the moment (and I stress at the moment) and I am lucky enough to have been divorced at the right time to make a killing on a flat that I bought. My main pension, as far as I am concerned, is in a property that I rent out which hopefully will enable us to live very comfortably when we decide to sell it and retire. I personally don't think that any pension will be worth that much at retirement age (and thats if I even get to the age to take it) so planning for earlier retirement and being comfortable and happy is the priority. Renting out property is fine, as long as you can afford to cover the mortgage if it is empty for any period of time. __________________ Pigs? In there??