I started mine when I was 16, I was told my pot will be over £450k, 27 years later at £150 a month my pot might make £180k. I put £1800 a year in and my annual payout will be £1500 a year in 2041!
The guy who sells your pension won’t be around and it’s mostly just salesman making money.
so at 55 I’m cashing it in, pay the tax and hopefully get a couple of deposits for my boys first properties if I’m lucky enough to still be here.
Don’t put all your eggs in 1 basket, also don’t try planning everything to the letter, life has ways of interfering.
You have to live just now, you are young, enjoy it.
I always pensioned what I wouldn’t miss, and I’m a low risk investor so my return is low but steady ish.
A £400 hedge cutter can make you a grand a week for 8 months of the year. That’s a better investment imo.
If you are a self employed, whatever you put in, the government will add 20%, then at the end they will tax you 25% for getting some of it back.
Things in life aren’t as simple as, renting good, renting bad!
Difflocks post a few pages back is the best advice I’ve ever read on line.
What kind of person are you? Can you handle daily phone calls from a tennant moaning about a door nob? Can you evict a family of 5 on Christmas eve for not paying their rent?
i let 3 properties for 8 years and it was a ball ache. Unfortunately I had 2009 in the middle of all that so I never got bargains and when I sold I was happy to just get rid of the credit and stress.
I had factors, lawyers, handymen, sparkies, plumbers all on speed dial.
i had 2 tenants intentionally damage the properties just to get a newer house by the time I found out, locks were smashed , belongings left and I couldn’t legally access them for 2 months.
I did have some excellent tenants, but they also never paid their rent on Christmas Eve , by the time I found out in January when the banks went back to work, I was getting letters from mortgage companies.
Did I do everything perfectly, certainly not!
What I’d say is take advice on the internet with a pinch of salt, whatever you are going to do, study and learn, do a course on economics, marketing, joinery, plumbing.
Bankers will take your deposit and throw you a Set of keys to houses and large machinery. After that it’s up to you to work it out.
Good luck!