Pension Contribution or Offsett Mortgage Repayment?

spartacus173500

Thanks for replies.

From NHS Pension Scheme Guide:

Yes - "NHS pensions are fully index-linked to protect them against inflation."

Yes - "Additional Pension provides cover for dependants - each £250 unit of AP also increases your partners survivor pension by £93.75 a year."

Triumph13

Some of these replies assume 40% tax relief on the whole £40k sum. The OP may need to feed the money in over several years to achieve that as he gives his salary as 'over £50k' whereas to get the full £40k relieved at higher rate in one year it would need to be over £93k pa by the time you allow for his existing contributions. If the OP is on say $55k then I make it they'd have less than £7k pa of 40% capacity.
The best answer therefore may be to use the offset mortgage as a useful parking place for some of the cash whilst feeding it into the pension over the next few years in such a way as to maximise the tax relief.

Triumph13

Sorry, forgot that the offset was against the holiday home and therefore may not be tax efficient to park any cash there, but still worth making sure you use up all your remaining 40% capacity up to retirement.