Just wondering with the recent budget changes on pension, would we be better to pay off mortgage than put into pension?
I pay 250 into pension, dh 500, both pay tax at 41%.
Mortgage is 250k left with tracker 0.75% above ecb rate so good rate.
We are 39 & 35 with 2 kids.
Me and my girlfriend are going to start to save around 800 a month to save for a mortgage in January. In two years time we could get a decent place and hopefully will not have to sell at any point in our lives.
Paying off a mortgage early is priority to us. The money we could save after would be enough to have a pension on, even after 5 or 10 years after work. I cant see myself not working so I believe a pension for us is not ideal.
I don't know if im being naive. Everyone goes on about saving for a pension early. I can see a better future paying off a mortgage early as possible and then keep on saving that money afterwards in a regular saving account.
Just wondering with the recent budget changes on pension, would we be better to pay off mortgage than put into pension?
I pay 250 into pension, dh 500, both pay tax at 41%.
Mortgage is 250k left with tracker 0.75% above ecb rate so good rate.
We are 39 & 35 with 2 kids.
Hi Brendan, you say it's not worth contributing from next year on, why so? I thought there was just a minor change this year for 2011 that wouldn't upset the balance too much. If what you say is true though, would I be better off paying off my ECB + 1.25% tracker also?
I realise that once they start reducing the relief from 41% down that it would make more sense to not pay into it.
Also, my employer matches my contribution so that may have a bearing on it also.
A bit previous maybe? We don't know exactly what the changes will be, even 20% relief mightn't be so bad. The presence or lack of ER contribution seems to be of growing importance.