AVC or Pension?

Discussion in 'Pensions' started by Kenbo, Jan 31, 2017.

  1. Kenbo

    Kenbo Frequent Poster

    Posts:
    70
    Hi all
    Very basic question as I haven't a clue.
    Have tried to look at previous posts but want to run it past AAMers.
    €20,000 saved and want to pay down debt,tracker mortgage €53,000 with 8 years to go.AVC with Cornmarket not contributing any more at value of €25,000 as I will at age 60 in October 2018 be short service by almost 2 years.
    So question is pension or mortgage as we have 1 daughter in College and another in secondary school.Head says pension but don't want debts at retirement.No other loans.Have contacted UB and AVC for figures but not sure which option to take!TIA Kenbo
     
  2. Gerry Canning

    Gerry Canning Frequent Poster

    Posts:
    2,517
    1. With one in College + one in 2ndary school , you will need that k20 you have saved, if only as comfort until they are through college.
    2. With AVC @ k25 it will help on short service.
    3. k53 on tracker with only 8 years left , I would be tempted to keep it going , only pay off when rates increase (and they will).

    After 8 years , you will have nil debt , your k20 intact and k25 AVC to bit fund shortfall.
    And big pluses of girls through college and free home = yippee!
     
  3. Kenbo

    Kenbo Frequent Poster

    Posts:
    70
    Thanks Gerry
    Got figures today and your advice is spot on.
    Low tracker so best to keep saving until rates rise and then review.Thanks for advice.
    Kenbo