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Bonus into pension or reduce mortgage ?
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con_carne
Posts: 3 Newbie
Good afternoon everyone
I am in the fortunate position of receiving a bonus soon (about 7-8 k pre tax) and have been told by my employer that they can pay it straight into my pension, pre - tax.
I do not need the money at the moment - thanks to ideas on this site ! Therefore if I took the bonus as money, paid the higher rate of tax and NI on it, I would then use this to reduce my mortgage.
So I was wondering what people generally think is better - paying it tax-free into my pension, or paying tax on it and then reducing my mortgage (still 15 years to go)
cheers
(I have also posted this in the Pensions forum)
I am in the fortunate position of receiving a bonus soon (about 7-8 k pre tax) and have been told by my employer that they can pay it straight into my pension, pre - tax.
I do not need the money at the moment - thanks to ideas on this site ! Therefore if I took the bonus as money, paid the higher rate of tax and NI on it, I would then use this to reduce my mortgage.
So I was wondering what people generally think is better - paying it tax-free into my pension, or paying tax on it and then reducing my mortgage (still 15 years to go)
cheers
(I have also posted this in the Pensions forum)
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