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YoungCUB
Guest
If instead of paying off the capital due on my mortgage, I put that money into a pension fund and pay my mortgage as interest only, is this a good idea ?
i.e. to pay the Capital per month of € 1,138 off the mortgage, i have to earn € 2,000 before tax. So I put € 2,000 gross into a pension, as its tax free to do so.
I presume I am only deferring the tax, as will have to pay tax on my pension income except for a 20% lump sum, on retirement.
So is this a good idea and what are risks associated ?
i.e. to pay the Capital per month of € 1,138 off the mortgage, i have to earn € 2,000 before tax. So I put € 2,000 gross into a pension, as its tax free to do so.
I presume I am only deferring the tax, as will have to pay tax on my pension income except for a 20% lump sum, on retirement.
So is this a good idea and what are risks associated ?