pension calculator for expected return

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Familyman77

Registered User
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Looking to see if there is a pension calculator available. I've run potential ( €500 per month ) overpayments through the online calculator to show the potential savings etc so I'm looking to see the calculation of running the same amount through a pension scheme instead . All I see online is calculators telling me what I need to save for a desired return.
 
The one thing about the pension calculator from the pension authority is that they use really conservative returns and high costs. So conservative and costly that I wonder if it is worth using. it's like they've assumed you've picked the worst pension scheme ever.
 
I must be missing something on that page. I'm looking to see projected return on paying €500 per month into a scheme for 10 years. My mortgage would reduce to 10 years and save 16k interest if I were to overpay 500 per month
 
I don't think that your comparison is valid. There are too many complications
  1. tax relief on the pension​
  2. tax on the then pension when it is paid out​
  3. Different timescales for your mortgage and your pension​
  4. Potentially a lower mortgage rate if you reduce your LTV​
  5. Different tax treatments in the future​
  6. Age and contribution limits on the pension​
Then there are other issues such as the level of your borrowings compared to your income and to the value of the property and whether you might trade up in the near future.

You should look at the discussion in a thread like this

Key Post - Pay down your SVR mortgage before starting a pension, but don't leave it too late

Summary of thread's conclusions (but it's worth reading the thread in full, as differing views are discussed) 1) If you have a cheap tracker mortgage, you should not pay it off early. Putting any spare cash into a pension fund(or some other investment) would be a lot better. 2) If your...
www.askaboutmoney.com

and then maybe do a Money Makeover thread
 
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