Hopefully, you have already been thinking about your retirement and how you are going to provide a steady income for yourself once you stop working.
Still haven’t even considered this yet? It’s time to start thinking now before it is too late! You now need to weigh up whether you want to invest in property or a pension for your retirement income. Of course, each comes with its own pros and cons, and you will hear people always claim that their investment of choice is better than the other. But what do the experts think about pension vs. property? Well, they too can’t seem to decide. So, what you need to do is to weigh up the pros and cons of each of these investments and see which one is better for your own situation.
To help you make this crucial decision, here are some of the main things to consider.
There Are Good Returns From Property
One of the main complaints about pensions in recent years has been that they don’t grow enough anymore. And it is true that property has the potential to grow in value significantly more than a pension. However, you need to invest some serious time and effort into it if you want to see some big returns. One excellent way to do this is to buy to rent. You might want to invest in some mountain real estate situated in a popular tourist destination. Renting this out to holidaymakers will provide you with a monthly income so you can earn more on top of the amount that the property increases in value!
Property Prices Are Much More Volatile Than Pensions
The property market has rocketed in recent years, and property owners have seen their home’s value significantly increase. However, it looks like this honeymoon period is pretty much over. Right now, property prices are very volatile, and you might find that an investment property, in fact, loses some value. Even though pensions aren’t always guaranteed to go up in value, there is a lot bigger chance that you won’t lose quite as much with a pension. So, if you don’t feel like gambling your retirement cash, you might want to play it safe with a pension.
Your Employer Can Help With Your Pension
Setting up a pension is easy as most employers are legally obliged to provide all their employees with one. You won’t need to do any of the admin work, as your employer will get it all set up for you. You just need to sign on the dotted line! Not only that, though, but your employee will help with your contributions. In fact, some even match their employee’s monthly payments. For example, if you are paying in $100 each month to your pension, your employer might match this and add in another $100!
The arguments about whether it’s best to invest in property and pension rages on, and won’t end for some time. So do your homework to ensure you go with the best option for you!