Bother joining pension or not?

atush

He still owes it, no matter what.

I agree, it is worrying.

jamesd

justme111 wrote: »

How much disposable income do you have after mortgage and children related expenses?

One potentially relevant thing here is that pension contributions reduce income when working out how high working tax credit payments will be. Higher pension contributions, higher WTC.

For some people it can greatly increase the value of pension contributions above just the usual tax relief. Still going to be a cut to income, though.

jamesd

justme111 wrote: »

If less than state pension than your priority is to chose whether you will try to pay off mortgage before retiring or it is non viable and you will have to rely on local authority accommodation for living till the end of your life. If former than coping while children do not earn yet is a priority , you will be sorted after. If latter then familiarising with rules for housing and crunching numbers on when to sell the house is priority.

There are far better choices than those available. Mortgage payments can be reduced by extending mortgages to age 85 and beyond, while equity release can eliminate the need to make mortgage payments while keeping the home. Downsising when children are no longer living there and/or moving to a cheaper part of the country can also eliminate a mortgage and perhaps free up capital to invest to produce income.