Pension Query

PeacefulWaters

Does your employer offer Sharesave schemes or other incentivised share programmes?

Utilising these outside of a pension and then adding the matured values to a pension fund with tax relief should form part of your planning.

LAPORTS1

Hi PeacefulWaters,
Unfortunately there are no sharesave schemes with my current employer, however I've made a few outgoing changes which should see me able to up my pension contributions to £400 per month from next month onwards.

kidmugsy

LAPORTS1 wrote: »

You've given me something to think about regarding the mortgage. The current rate is 2.5%, I had never considered paying the minimum and investing the difference.

If I were you I'd pay the minimum on the mortgage but I might not invest the difference, I might save it. I might open high interest current accounts that have attached monthly savers, and earn myself 5% p.a.

One advantage of this is you can reverse it whenever you want, without the money being tied up inflexibly in a pension for a couple of decades.

A second advantage is that it may be that financial assets - equities and bonds - will become cheaper in the future. Then, again, you can reverse your decision and invest rather than save.