We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

pension or overpay

Hi just wondering what everybody thought of a nice dilemma I have. I have a hundred pounds a month that I would like to start another pension but I wondered if overpaying my mortgage would be a better idea. Thanks

Comments

  • Hi, I think it would depend on how long you've got left on the mortgage and how much you would save versus how much you'd get for your pension. There is a mortgage overpayment calculator on stoozing.com you could try to find out how much time and interest you would save by overpaying.
    SPC # 348 2014-£169.07/2015 - £156.89
    GC 2014 Feb-Dec £2931.62
    GC 2015 Jan £216.93/£220 Feb £291.97/£215 Mar £213.64/£220 Apr £207.62/£220
    DFBXmas2015 #40 - £3,474.61/£4,000
  • Seanymph
    Seanymph Posts: 2,882 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    It also depends upon the pension, and what you would get for your £100
  • Tricky one. You'd have to work out how much you'd save on the mortgage overpayment compared with how much you could expect to earn on the extra money in your pension pot over the same time frame. With the pension you'd have to make an assumption about it's growth. The mortgage can be calculated accurately with the overpayment calculator on this site:

    http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator#result

    If you are not sure, you could simply split it 50/50.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617.1K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.