Pension vs Mortgage

nicolapaulbertie

Hello. My husband and I are in the situation now where we want to increase our pension contributions. We are both in work pensions, but would like to know, would we be better off increasing our contributions or paying the same amount off against our mortgage every month? I don't know if this makes a difference but I am 30 years old and my husband is 36, neither of us will probably be in the same job when we retire. Thank you for your help and advice.

ReportInvestor

Interesting question.

Are either or both of you higher rate taxpayers?

If so, are you still in the higher rate tax bracket after your existing pension contributions?

Do you get any extra employer contribution if you "increase work pensions"?

nicolapaulbertie

Hello, thank you for replying, I haven't been able to get on my computer this weekend. To answer your questions, no neither of us are high tax payers and no our company contributions will not increase. Thanks for any advice!

EdInvestor

I would use the extra money to pay off the mortgage. But if you could get extra matching contributions into the pension, it would be better to do that.