Around 400k.What is the value of your property?
Yes, my plan is to keep this property.Do you intend to live in it for the rest of your life, or might you be trading up?
Yes, they offer a pension scheme but my I still have to contribute in order to receive their contribution.Does your employer not have a pension scheme?
True! but if I start investing into my pension account right now, it would take 30 years until I can use that fund. On the other hand, if I invest my money into the property market, I'm confident I can purchase at least two properties in about 8 years time.The pension has huge tax advantages over property investment in your own name. Forget about buying investment property until you have maxed out your pension contributions.
Yes, they offer a pension scheme but my I still have to contribute in order to receive their contribution.
True! but if I start investing into my pension account right now, it would take 30 years until I can use that fund. On the other hand, if I invest my money into the property market, I'm confident I can purchase at least two properties in about 8 years time.
The tax relieved pension contributions are limited to 15% of 115k.You can contribute 15% of your gross salary or €30k to your pension fund.
You will get tax relief on this at 40%, so the effective cost to you is €18k.
Earning 190k per year, you should really be able to do both if you want to.My question is, should I start saving for pension or pay my mortgage early?
Oh yeah absolutely. My first plan is to pay down my mortgage and then think about any forms of investments.Just to be clear, I am not recommending this. I think you should pay down your mortgage and not invest in property.
2) Pay down the mortgage on your home until about 5 years before you are ready to set up your own business
The tax relieved pension contributions are limited to 15% of 115k.
My first plan is to pay down my mortgage and then think about any forms of investments.
@Brendan Burgess is there a threshold at which point you should stop putting money in a pension pot?
There is, but as he has nothing in his fund now, he does not need to think about it.
Brendan
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