Comparing the 9 to 5 Working Life Vs Investing in Property
Analysing where we are likely to end up if we work the 9 to 5 and pay into the average pension rather than taking control and investing in the property market for income.
Traditionally we are told to pay into our pensions and buy our own home and then live a happy life, but what if we actually took a moment to realise that just doing average is just not good enough when it comes to the point of retirement.
With the national average wage currently set at £27,600 a year, those who save the 8% minimum pension contribution would have to work until age 77 in order to achieve what is coined as the Gold Standard pension of two thirds of their pre-pension salary.
Even if you were to achieve the Silver Standard of half your pre-pension salary you would still have to work until you are aged 71 with no breaks.
This no doubt paints a rather bleak picture for most of you. Of course those calculations are based on today, who knows where the goal posts will be in 20 years’ time.
The idea of winding down as we get older appears for many as an unachievable ideal. If you are banking on your pension giving you a retirement of comfort it could be wise that you now, consider other alternatives to boost your savings so that you are ultimately taking control of your financial future and perhaps setting yourself up for a more ideal retirement.
Even investing in property can lead to a situation where you find yourself with the option to move away from employment altogether and become financially free and independent of relying on the need to actually go to work.
Property values are continuing to increase, bank savings rates are continuing their declines, pension pay-outs are falling but the buy-to-let residential market is booming here in the UK and perhaps now the market is primed for a stretch of growth.
An average rent is now £743 a month and with the population in the UK rising rapidly we are seeing internal migration increase along with people living longer. This means that currently an investor purchasing a property at the right price in the right area is able to see a good 9 to 10% NET from the rents whereas the return from a pension averages an abysmal 4.3%.
FJP Investment is a team of investment specialists sourcing a wide range of investment opportunities both in the UK and overseas, including buy-to-let property investments.
You May Also Enjoy
The Compliance Curve: Meeting Landlord Safety Standards Through Smart Heating Upgrades
Government confirms ban on no fault evictions to begin in May
Landlords must ‘act quickly’ after Renters Rights Act launch date is announced
Landlord EICRs Compliance in 2026: EICR Rules, Costs & Risks — Interview with Ethem from Efficient Home Energy
Mortgage arrears and possessions Q3 2025
