£100 per month

babymarf

Hi All,
I am a married man aged 45. I have an extra £100 per month at my disposal. It this money best invested in my pension or used to pay off my mortgage earlier? My mortgage interest rate is currently 1.5%.
Cheers.

Fuzzy14

I'd blow it all on alcohol.

It really depends on how long your mortgage has left and if you have any kind of pension in place. I'm mid (*ahem* late) 30s but had been paying into a workplace pension for 20 years so my financial advisor told me it was ok to leave it for the moment and pay off my mortgage early. Paying off my mortgage early will save me £36k, I wouldn't be able to make that kind of money paying into a pension scheme.

dimbo61

That is a great mortgage rate so save into cash ISA,s for the time being and pay a lump sum off the mortgage if interest rates go up.

AndyT678

If you definitely don't need to get your money before you retire then it's an easy choice for me.

AVCs to your pension are pre tax so your £100 is actually £125 or £167 depending on your tax rate. That's a minimum 25% gain straight away. Good luck finding an ISA that can beat that.

Thrugelmir

Personally I would opt for additional pension contributions at the current time. Be ready to switch tack though once interest rates start to rise.

If you would prefer to see your mortgage end sooner. Then a £75/£25 split perhaps in favour of the pension.