Talking Money
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- 7
Do you own a house?
Have you paid down the mortgage to a suitable level?
You should only voluntarily contribute to a pension scheme to the extent that your employer matches it, if you have not yet bought a house.
Save your money outside a pension scheme until you have bought a house and got the mortgage down to a comfortable level.
Brendan
Your savings outside the pension will also grow with compound interest!
The bigger your deposit, the better your choice of mortgages and the lower the interest rate you will pay on your mortgage.
Brendan
Beyond that, it's a question of balancing your long-term and medium-term financial needs.
I fundamentally disagree.Just to be clear putting your savings into a a deposit account is both for your long-term and medium-term financial needs.
I think while we are renting at a very good rate, able to well, and able to save a set amount for a house I'm happy to continue. Agree with Brendan that a home paid for is better than renting long term.
your views are still wrong.
Just a pension health check please. I'm aged 27 and have been part of this pension scheme for the past three years. I'm currently paying into a 50:50 risk sharing scheme, DB Section & DC section. Just to note the Salary Cap is €48,000 - I expect to exceed that salary by 2021 - 2023.
Currently these are the figures:
Basic Salary: €36,000
Overtime: €4,000 - 6,000 (not pensionable I understand)
Total: €42,000
Pension: Enrolled since 24
Employer: Contributes 8%
Myself: Contributes 5%
AVC: Paid 2% AVC for two years, raised it to 6% in January.
Total: 19% combined total.
As I'm earning good money for my age, am I doing the right thing by having an AVC? I understand and accept that I won't see this until retirement.
Also my salary will rise to 40K by December of this year. Instead of increasing my AVC this December I was thinking of increasing my debt pay down by the surplus and building a solid emergency fund.
What would you advise?
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