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.

Alex Evans

You May Also Enjoy

Breaking News

Homebuyers saving over £4,000 in SDLT despite increase

Homebuyers saving over £4,000 in stamp duty despite threshold increase, by opting for this particular property type The latest research from over-50s property specialists, Regency Living, reveals that homebuyers opting for a park home instead of a traditional bricks-and-mortar property are an average of £4,316 better off due to not having to pay Stamp Duty…
Read More
Breaking News

Industry reacts to latest Gov HousePrice Index

The latest index shows that: – The average monthly rate of house price growth in May rebounded to 1.1% following the -2.7% decline seen in between March and  April. The average annual rate of house price growth in May was up 3.9%. As a result, the average UK house price is now £269,000.   Colleen…
Read More
Cozy Pet Cat Tree Grey
Breaking News

Renter’s Rights Bill pet u-turn creates more questions than answers

The latest U-turn in the Renter’s Rights Bill (RRB) concerning pet ownership may temporarily protect landlords from the cost of pet-related damage, but it leaves major questions unanswered, warns Inventory Base, the UK’s leading property inspection platform. As confusion grows around whether the proposed pet deposit amendment will pass, the industry is left in limbo,…
Read More
Breaking News

Landlords See Higher Net Returns

Landlords See Higher Net Returns Despite Rising Start-Up Costs and Falling Buy-to-Let Incomes New research from Dwelly, one of the UK’s leading lettings acquisition and success planning experts, reveals that, despite an increase in start-up costs and a reduction in total buy-to-let income, the average UK landlord has seen an improvement in net returns when…
Read More
Breaking News

London lettings market gains momentum in June

London lettings market buoyed by surge in supply and growing renter activity, Foxtons data shows   Heightened rental activity in June, with applicant registrations rising 21% month-on-month Supply surged to its strongest level in four years, with almost 45,000 new listings recorded in June, an 18% increase on May   Average weekly rent climbed 1%…
Read More
Breaking News

The Renters’ Rights Bill edges ever closer to becoming law

Changes to overhaul the private rented sector across England have been a long-held ambition from Labour and has paved the way for the planned introduction of the Renters’ Rights Bill. Over the last twelve months the legislation has been working its way through Westminster and has been subject to oversight and debate within the House…
Read More