reducing pension payments

[doublel]

Hi i am seeking advice on pension payments. Neither myself or my husband receive a pension as part of our employment contracts so I have an RAC and he has a PRSA. Over the past 3 years we were both contributing 500each to these. Since the arrival of our daughter 4 months ago we reduced the contribution to 350 to have a little more cashflow and we do seem to need it. As it gets closer to my return to work I am very concerned about the cost of childcare and how little disposabe income we will have once that comes into effect. I am wondering should we reduce the monthly contributions we make to the RAC and PRSA.?

We have a modest mortgage as we bought just before prices soared of approx 1600euro, a car loan for 350,a misc loan also for 350 which is almost finished and pensions of 700 meaning our fixed outgoings per month are 3K. Can anyone advise on what would be best in the long term, many thanks in advance....

 

[Complainer]

Are there any penalties on the PRSA or RAC contract for reducing your contributions? They would certainly be an obvious area to cut back your spending. If these are gross figures, your net saving will be less (about 60% of this, if you are both top rate taxpayers).

In the long term, your pension fund will be smaller if you contribute less, but it is really a matter of priorities.