[Carl2009]

The return on pensions is rubbish,that is if you any return at all

If you have cash on the hip property is always a good investment

Interesting thread. There is no right and wrong way. Everyone is different and at different stages in their lives their needs are different. I for one don't want to invest just one way. The first thing I did was get an offset mortgage. My wife an I paid our mortgage off after 15 years. Paying interest on a mortgage is a killer - get shot as soon as you can I say - and an offset mortgage effectively gives you interest on your savings at your mortgage rate. Usually this is significantly higher than the savings rate.

Re. the OP's original question I have had several pensions set up for years now. Here is the annual return in % (that is, increase in fund size) on each for the last 12 years. These figures exclude the contributions I make (I have another spreadsheet that tracks this too...  ), so this is exactly how each has performed.... Remember these are % growths, like interest.

Pension 1
23.898
18.882
-3.436
53.429
33.537
42.639
18.578
3.245
-9.904
The average is 20.61% per year growth

Pension 2
107.9
130.6
53.0
55.8
29.7
13.9
-6.8
46.1
23.2
9.2
17.9
21.9
The average is 41.87% per year growth

Pension 3
19.4
60.9
38.6
36.0
28.9
-4.8
-16.6
36.0
3.5
10.0
5.2
6.0
52.686
11.558
11.669
19.382
12.400
The average is 18.60% per year growth

As you can see there are some years where the pension fund has reduced in size, indicated by a minus growth figure, but generally they grow and grow well. I'm happy, but won't be taking out any more as I'm 51 next month and want a spread of investments as it were. As they say, the key is to start these things early, even if it's a small amount - £20 a month. I also get the government to gross my contributions up, rather than getting tax relief on them. Also do a bit of research about "pound-cost averaging": http://www.moneyextra.com/dictionary/pound-cost-averaging-003482.html

And yep, back in the Eighties I used to sell pensions and savings plans for a life assurance company 

I'd say do a bit of reading on the internet on Money Saving Expert and similar and then see a financial advisor. Don't go to a bank or a building society as they will only sell you their products which may not be the best on the market.

Hope this has helped.

best thing i ever did was buy property,i was lucky enough to have
a large amount of cash on the hip.I bought a couple of properties
here in the late nineties and several cheap properties in bulgaria
in 2000 in the varna and bansko areas,before they entered the
EU.

I guarantee a pension wouldnt of given me the kind of return
i got when i sold in 2007.

55 im retiring all being well healthwise i shall be leaving for
Italia matey and will be living my dream

Good on ya Gary 

[H20cleaning]

My main priority is to build a good customer base alongside a well run business... Im young now and progressing quite well.
Once i decide to retire i will either have kids running it or workers and just keep in the background chasing money up etc.

I should imagine i would be able to pay myself a decent pension out of the business.

If all goes to play i will of bought another house to rent out aswell in years to come.

[PoleKing]

Am I the only one who'd be quite happy never to retire?
I like my work.
I'd get bored if I didn't work.
I think I'll work until the day I die, whether I need to or not.

We don't know what's around the corner though.  Our health may force us to retire.

I've got a pretty good army pension; payable from when I'm sixty years old.

This is true.
I have things in place in case the worst should happen. (I don't mean dying)
A pension won't be drawable if i just feel like needing it though...