So all going well I’ll be mortgage free in 5 years when I turn 40.
I’ve a public service job with the old (better) pension, which gives you half final salary at age of retirement if you have 40 years service.
I’m hoping to retire earlier, perhaps at 55. So this would mean 30/40ths of my pension but that should still be c. 30K a year, after allowing for some wage inflation. To me this is enough to live off so I’m not sure I need an AVC?
The problem with retiring at 55 is I cannot access my pension until 65 without incurring massive penalties. So I’d hope to leave it alone and live off savings for 10 years before I draw it down.
So between 40-55 I’ll have extra cash, which I can
a) save - zero interest but safe
b) invest - stock market? Don’t know anything about it!
For a BTL I could get maybe a 15 year mortgage. Rent after tax might pay the mortgage in full each month and BTL mortgage interest is now 100% deductible for tax.
Of course there’s the hassle of managing the property for 15 years but I could sell it at 55 for hopefully close to what I paid and use the proceeds so fund my retirement gap of 10 years to age 65.
Any thoughts or suggestions on alternatives are really appreciated.
And any good landlord website links?