AVCs or extra mortgage payments?

mikeed49

I am 62 in August this year. I am in a local authority pension scheme. My mortgage finishes in 3 years five months and I plan to work until 65. I started paying £250 per month into an AVC last year. Should I invest more into the AVCs or increase my mortgage payments?

Thanks
Mike

Marco12452

Assuming that you will be paying off you mortgage before you retire, I would presume that it is not a large amount outstanding now. If I am correct you would be paying off more capital on the mortgage with each payment now than you were some years back. Considering this, it may be as well to continue your normal rate repayments on the mortgageas the interest would not be extortionate. The extra payments on AVC's would give you money when you required it most, and for a sustained period, assuming you live a long life.
There is always the option to take out any extra money you put in the pension, plus any gains as a cash sum if you prefer.

mikeed49

Thanks Marco, much appreciated.
Mike