Pension scheme auto enrolment

[rtbcomp]

Owning a house instead of renting is good hedge against inflation, recently house price increases are outpacing inflation, and gains are tax-free. Obviously this can't be guaranteed, but IMHO it's a good risk over 30 years. Better still if you're handy with DIY, buy a sound but shabby house, brighten it up and sell up & move on after a few years.

 

[8ob]

Owning a house instead of renting is good hedge against inflation, recently house price increases are outpacing inflation, and gains are tax-free. Obviously this can't be guaranteed, but IMHO it's a good risk over 30 years. Better still if you're handy with DIY, buy a sound but shabby house, brighten it up and sell up & move on after a few years.

Fill your boots with them, long term they never fail .

Bob

 

[Burdekin]

Owning a house instead of renting is good hedge against inflation, recently house price increases are outpacing inflation, and gains are tax-free. Obviously this can't be guaranteed, but IMHO it's a good risk over 30 years. Better still if you're handy with DIY, buy a sound but shabby house, brighten it up and sell up & move on after a few years.

For sure, you need a broad investment portfolio, property is a great one and best also done over a medium to long term. Short term you can get caught out if unlucky; Aberdeen at the moment.

If you want to retire with about 50% of your final salary per year, and considering DC pensions (I think) are calculated you living until 90, then you will never do that with a pension alone.

The thing I don't like is that they only let you take a lump sum of 25% when you retire and that could change. 100% would be my preference. :-)

 

[wookie]

Are you saying inflation is going to be 6 to 7% for the next 35years?

Who knows but I'd trust house prices over a pension any day.

If you get interest at the same rate if inflation which is normally 2 to 3% then you are still much better off than without.

If you get interest at the same rate as inflation then you are effectively standing still, sure the numbers are getting bigger but what it is actually worth is not changing.

 

[Rocketman]

But then with inflation you can look at cpi vs rpi because certain things like mortgages aren't going to effect you when you are retired.

Again though if you are personally paying into a pension with your own money and it is only getting 2-3% average over say 10 years it's garbage unless you are nearing the end and have a very secure fund.