Harkon321
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Reading through this thread, 'Good Salary vs Solid Gold Pension' got me thinking about my own situation. I've booked an appointment with a Financial Advisor but thought I'd also open this up to other people's experience and opinions.
At nearly 40 I have a LONG way until retirement and just over 20 years on the mortgage.
Does it make more financial sense to make small overpayments on the mortgage (limited to 10% due to fixed rate) or to make additional salary contributions to the pension scheme?
Mine and my wife's pension are both in the Teacher Pension scheme, I think I currently I pay in about 10%, although my wife's will be less as she works part-time.
I'm trying to get my head around whether the additional tax savings and matched employee contributions to the pension scheme (compounded over 20 years), can outweigh the potential interest savings by paying the mortgage off a little sooner.
Mortgage rates being so low at the moment is a another consideration.
At nearly 40 I have a LONG way until retirement and just over 20 years on the mortgage.
Does it make more financial sense to make small overpayments on the mortgage (limited to 10% due to fixed rate) or to make additional salary contributions to the pension scheme?
Mine and my wife's pension are both in the Teacher Pension scheme, I think I currently I pay in about 10%, although my wife's will be less as she works part-time.
I'm trying to get my head around whether the additional tax savings and matched employee contributions to the pension scheme (compounded over 20 years), can outweigh the potential interest savings by paying the mortgage off a little sooner.
Mortgage rates being so low at the moment is a another consideration.