extra pensions for pensioners

Jenniefour

kidmugsy wrote: »

1. Re deferral of State Pension
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210220/DWP024.pdf

Many thanks for that - hadn't seen that particular document before, very useful.

2. Re mortgage overpayments: I'd say it depends on (i) the interest rate you are paying. At (say) 2.5% p.a. or less I'd be in no hurry; at 3.5% or more I can see why you might want rid of it.

Right in between!! 3.09%. When rates go up I could always make sure I overpay a little, to keep end date on target. Have enough leeway for this.

And (ii) If there is a good chance that you could time the drawdown of a new pension so that you'd not have to pay income tax on it, then that would be very attractive indeed.

Great! That helps. I started my self employed business 30 years ago so one of the few remaining who are always a year in arrears, so to speak, with HMRC. That means I will be submitting a full years accounts on the year after I stop work but would get some allowance for paying into a pension on the HMRC tax year.

Of course, if clearing the mortgage raises your spirits, fair enough. We found that what raised our spirits wasn't clearing it; rather it was when we realised that we could clear it if we wanted to.

I will have more than enough money to deal with the mortgage anyway, I just like saving myself some interest.

Jenniefour

atush wrote: »

I would put more into pension, but what is your rate and when is it due to be paid off? How much is the balance?

I think you're asking me about mortgage - rate is 3.09% and with overpayments I've already made if I continue my £300pm over payment then it will be paid off in about 4 years. Original term when I got the mortgage was 11 years.

I agree with triumph, that deferring for the 10% uplift is a great idea.

Yes, had a quick look at the link provided by kidmudsy - haven't seen it laid out like that before. Looks even better than I thought. So deferring state pension is a no brainer. Meantime, would be one item less for HMRC to add to my tax bill.