Is it so wrong to pay off my mortgage early?

bigfreddiel

But of course! We all have choices, mine was to pay off mortgage, pension and ISA..

Fast back to my 30's I never gave pensions a thought, saved into an ISA s&s, and paid off mortgage. At that time retirement is so far off you think it isn't ever going to happen. I wouldn't listen to anyone when they suggested I should save more into a pension, much like any other kids of that age.

Fast forward 25 years, late 50's now and your mindset sharpens up, well at least mine did, like what's going to be coming in every month when your salary isn't.

Breakout the spreadsheet, check what your pension looks like, check investments. Check state pension. Think of other options like buy to let.

Many what if calculations later and you have about ten years left to get it sorted.

And those ten years have just shot by. Spreadsheet what ifs have worked. So is that luck or planning?

Don't put it off, don't be frightened and ignore it, retirement will come and planning for it will help.

Regrets, not planning it earlier.

Cheers fj

zolablue25

I am in a similar position as the OP. I have an offset at 1.25% and could easily pay it off if I wished. I have decided, instead, to use these funds in 3-5% current accounts and pocket the difference. In my own head I have paid off the mortgage already or, at least, could do it in an afternoon if I so wished so its a win-win for me.

atush

Do you have a pension?

Waiting til you are 50+ like bigfreddie means less time for compounding returns.

Early is better. My 21 yr old has a pension.

bigadaj

bigfreddiel wrote: »

But of course! We all have choices, mine was to pay off mortgage, pension and ISA..

Fast back to my 30's I never gave pensions a thought, saved into an ISA s&s, and paid off mortgage. At that time retirement is so far off you think it isn't ever going to happen. I wouldn't listen to anyone when they suggested I should save more into a pension, much like any other kids of that age.

Fast forward 25 years, late 50's now and your mindset sharpens up, well at least mine did, like what's going to be coming in every month when your salary isn't.

Breakout the spreadsheet, check what your pension looks like, check investments. Check state pension. Think of other options like buy to let.

Many what if calculations later and you have about ten years left to get it sorted.

And those ten years have just shot by. Spreadsheet what ifs have worked. So is that luck or planning?

Don't put it off, don't be frightened and ignore it, retirement will come and planning for it will help.

Regrets, not planning it earlier.

Cheers fj

Stocks and shares isas in the 1980s, you were well ahead of your time Freddie!

Red29

Playing_with_Fire wrote: »

I hereby forgive your former self for foolish spendthrift behaviour. Your foolish behaviour mortgage of £35k has been replaced with a super savvy pension-investing £35k mortgage, at the same excellent tracker rate of 1.29%.

Now go and set up a pension.

Please direct all negative thoughts to my office where they will be hit with a frying pan.

Thank you I am trying to forgive myself and not beat myself up and end up making more foolish decisions!!

Red29

zolablue25 wrote: »

I am in a similar position as the OP. I have an offset at 1.25% and could easily pay it off if I wished. I have decided, instead, to use these funds in 3-5% current accounts and pocket the difference. In my own head I have paid off the mortgage already or, at least, could do it in an afternoon if I so wished so its a win-win for me.

This is a really good way of looking at it I'm going to repeat it like a mantra..... I have paid the mortgage off and it's making me money!!

Red29

I am taking the advice and off to research pensions - are there any good starting points anyone can recommend? I will be reading the pensions board and pages as a starter. Thanks again everyone for your contributions it has really helped me to clarify my thinking.

atush

Who do you work for? Do they have a pension? where they pay in along with you? This is the best pension to start with. Pay in at least as much to get the max they will match/pay in- this is FREE money.

Whatever you put in will get added to by HMRC according to your income tax rate? What rate do you pay?

if BRT, you put in 80, the govt pays in 20 so you get 100. You pay HRT, you pay in 80, the govt pays you 20 plus puts in 20.

HL, Cavendish online are two to look at for PP and SIPPS.

kidmugsy

Check whether your employer offers a pension: if so put in enough to harvest its contributions. Does it offer salary sacrifice? If so use it before an insolvent government puts a stop to it.

ChrisJ1988

Forget your emotions and do what the numbers suggest you should do. After all its just numbers on a screen. Tell yourself you know what you should do and just do it. Dont over think it, re-assess things change. I appreciate this isn’t always as easy as that, if it was credit card companies/bank would go out of business.