Whether or not to suspend pension contributions

Hi,

I am paying into a PRSA directly out of my monthly salary every month. I am going to purchase a property next year so I will need to increase my savings over the next 6 months. As my pension contributions reduce my net income, would it be advisable to suspend my pension contributions and increase savings?
Do pension contributions reduce the amount that you can borrow in general or how do banks view pension contributions when it comes to how much they will lend you?

Thanks
Aidan

Banks recognise that you can stop your pension contributions to pay for the mortgage, so they do not count against you, unless you are in the public service where membership of the pension scheme is mandatory.

As to whether to stop your contributions to boost savings, there is nothing wrong with that. There are great demands on your money but there is only so much to go around. You have to prioritise. If getting a mortgage is the most important thing to you now, then why not stop for a year or two and then start up again when you can. Just be sure to save that amount and clearly transfer it from your current account into a savings account.


Steven
www.bluewaterfp.ie