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If you tie up all of your wealth in one asset class (for example shunning a pension to pay off the mortgage) - one could leave oneself very very exposed to a property wobble.
The point is not to do with investment so the diversification argument is not particularly relevant.
For most people the main motivation for buying their their house is not that it's an investment; it is a purchase.
And, in any event, there are numerous posts on this site from people noting that their pension investments have been providing risible returns for years. Lots of people would have quite happily settled for fund growth equal to mortgage rates over the last five years. They'd have got that if they'd reduced their mortgages - the tax relief on pension contributions would presumably be available to them as they increase their pension contributions significantly once their debt has been reduced.
Tax reliefs not used in one year do not get carried over to another year.
Yes...but the % levels are quite high, and unused relief can be carried forward - For example someone over 40 years old can get tax relief on up to 30% of their non-pensionable income in any given year. A 41-year old who earns €100,000 in 2007 can get tax relief on contributions up to €30,000 made in that tax year or by 31 October in the following year. Contributions of over that level can be carried forward to later years. (eg if in the above example, a payment of €40,000 is made in 2007, the tax relief on the remaining €10,000 can be used in 2008 or later years.)The limit on personal contributions in a year is x% of salary (x being age related).
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