Pay off mortgage early or start a pension

newtoitall

Not sure if its in right part of forum but..

I'm 38. Have got approx 9 years left on mortgage (as i'm overpaying into it, if rates stay the same).

I don't have a pension but my new job offers a pension sheme where you can pay up to 5% and they match 5%.

Am I better overpaying the mortgage or paying into the pension scheme? Currently after bills etc... I can spare £100 per month extra on top of what I overpay into the mortgage or pension.

Any thoughts as I know a lof of people say invest in property over savings and i'm not sure.

Thanks.

shop-to-drop

Pension definitely, your spare £100 will be £125 in your pension pot + your employers contribution. Make mortgage overpayments too whenever you can afford a little more.

Thrugelmir

The employers pension contribution is "free money". Take it while you can.

dimbo61

Pay 5% of your earnings into a pension and like others have said you get 5% from your employer and TAX relief on top.
You will still have your mortgage cleared early if you can overpay whatever you can afford and good luck in the new job.

jamesd

You get immediate 100% interest on the gross pension contribution because of the employer contribution. And more still because your cost is net. You're simply not going to be able to save enough money with mortgage overpayments to make up for losing that extra money.

newtoitall

Thanks for advice. Looks like the pension is the way forward.