Pension or debt?

lb7282

I have just had a £200 cut in my monthly child tax credit because my earnings have been higher since I got a full time job.
I am paying back £200 a month to my dad for money he lent me to pay off debts incurred during and after my separation, he isn't charging me interest.
I am paying £200 a month into my teacher's pension. I am 43, and have only paid in to my pension for about 4 years due to maternity/supply teaching etc. I have no other pension provision.
Should I opt out of my pension to pay off the debt to my dad? I am trying to cut my expenditure but there is little slack in that direction.
Now I am working full time I hope to get promotion in a few years so will hopefully be earning more soon.
Just not sure how useful the pension is to me at the moment.

gfplux

You in fact have another pension provision, that being your state pension.
I would NOT stop paying in to the teachers pension just to pay back your Dad, but I would stop if you would get into FURTHER debt.
I think you can stop and start your pension contribution very easily.

Hillbilly1

Are your finances not still at a similar level as you have increasedyour income and that is why the benefits have reduced?

It may help to do a SOA to work out if you are worse off now and if so by how much.

theoretica

What does your dad say? A pension is a very sensible thing to add to, and your dad may be delighted to lend you money interest free for this- or he may prefer you to pay him back as fast as possible.

sleepless_saver

lb7282 wrote: »

Now I am working full time I hope to get promotion in a few years so will hopefully be earning more soon.
Just not sure how useful the pension is to me at the moment.

The pension is very useful as you have a lot to catch up on and maybe only 20-25 years to do it. And as you're in a final salary scheme, money paid in now when you are earning less will translate into pension based on your final higher salary.