What do do with regulart surplus monthly income

Philshep

Hi MSE,
I am 53 and have been in a stable position (given the current employment market) for some years now. I find I have a percentage of my monthly income available for future use but I am not sure what is the best option. I have 9 years left on my mortgage and I have a private pension & I am enrolled in the work place pension scheme.
Which would be better for me financially:
Use the surplus income to reduce the term of my existing mortgage or invest in to my pension instead?
Is there a 3rd option?


Any good advise would be welcome.


Thanks in advance


Phil

eskbanker

Philshep wrote: »

Which would be better for me financially:
Use the surplus income to reduce the term of my existing mortgage or invest in to my pension instead?
Is there a 3rd option?

There are substantially more than two options here, depending on a range of factors, including the level of your (and employer's) contributions to your pension schemes, the terms of those schemes, when you might want access to the money, what other reserves you have, and the interest rate on your mortgage.

If the latter is very low then there may be little incentive to pay it off early, and if the pension money isn't particularly easily accessible (or is best left until later) then you may wish to simply save money instead (for easy access), or invest it (for longer term growth without pension constraints).

Peelerfart

Another thought,you're 53, have you a burning desire to retire and see the world,or are you happy rolling on?

atush

Basically, do you have a large emergency cash pot? When do you plan to retire? Any investments outside of pensions? mtg rate? Spouse? Their pension provision?

If you have enough cash, then increasing your pension and S&S isas would be worth a look.