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pension or overpay

kammx4
Posts: 43 Forumite


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
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Comments
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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/£4,0000 -
It also depends upon the pension, and what you would get for your £1000
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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 50/50.0
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