gpjordanf1
Registered User
- Messages
- 12
I guess at my age I'm thinking of the future more and retirement, just wondering have I left it too late to start a pension?
Should I be aggressively targeting this now or just wait to see what auto enrollment will bring?
Anyone else in the same boat?
I did lose 10 years of earnings with the recession and had to retrain myself in a new sector and only getting back to 2008 earnings now
so last 10 years have been keeping head above water & paying the bills & saving for the children.
OP, you have a sizeable amount in savings but it isn't excessive, I am assuming the savings are a cushion built of experience and I don't think I would be inclined to redirect them all at your mortgage as suggested by Live Well. As it is a tracker at just 1.55% it isn't very expensive. You are trying to balance out the cost of money borrowed in the past with the return on money you have at the moment. If you wait the 3.5 years to start building your pension pot, you will be approaching 50, hence the reason I think getting your pension started should take priority over clearing down your mortgage, I think it would be better value in the long run. You could consider a blended strategy here, use some of your savings to pay a lump sum off your mortgage and then retain your current repayment level so that you are overpaying as suggested. You really need to sit down and work out what you want to prioritise.The €32,000 in State bonds I would use it to pay a chunk off the mortgage and then combine it with your savings every month. The sooner you get your mortgage paid off the sooner you can redirect that money into a pension. As a back of the envelope (made up) calculation. If you have 10 years left on your mortgage and you paid off 32,000, your new mortgage monthly payment could be cut from €682 to €395 a month. If you then continued to pay your current mortgage of €682 (You are now overpaying) you could have your entire mortgage paid off in 3.5 years. (which sounds pretty good to me). If you combined that with what you are savings...that time could be reduced further. At this point you, and not the bank, will own your house.
After that I plough it all into a pension fund.
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