OP mortgage or put money elsewhere

Thrugelmir

atush wrote: »

esp if your escape to a less stressful job is to be before 55.'

Sometimes losing one's career job isn't a voluntary decision. Once off the ladder can be tough to get back on. .

AnotherJoe

Escapar2020 wrote: »

Good point, well made! It would potentially mean that my money would be lcoked away for 20+ years, so would it help me to quit this job and change my lifestyle in a couple of years time?

It wouldn’t be 20 years. At present it would be 10*, when you are 55. In return for that you’d get a massive tax benefit, one which, BTW, is unlikely to last much longer (the extra tax relief on high rate taxpayers) so OP now and saving more into a pension later is a risky proposition, the other way round ensures you take the substantial tax benefit whilst you can.

IMO posting on the MFW board is unlikely to be helpful to you, as it seems mostly populated by people self congratulating themselves on the sacrifices they are making to get rid of their mortgages, and ignoring other options such as significantly improving their pension position via tax relief.

My apologies to the MFW denizens if I’m doing them a disservice but you rarely see anyone there pointing out how much money they lost by forgoing 40% tax relief, instead it’s all about how they sold something on eBay for a tenner and how thats reduced their mortgage.

Any more comments on what to do with the money is really dependent on the age you plan to retire and how you’d bridge the gao between then, being able to claim private pensions at age 55, works pensions at various later ages, and then SP at 67 or so. Eg you need a plan. And that plan should most likely factor in being able to take 20% free money sav3 now, at age 55 .


*Nothings guaranteed but it also seems likely that you are safe for it remaining 55 for you since they would most likely give 10 years notice.

atush

Thrugelmir wrote: »

Sometimes losing one's career job isn't a voluntary decision. Once off the ladder can be tough to get back on. .

Stating the obvious.

But But op wants a plan. And using a pension as a higher rate taxpayer is a good one. Losing your job is what your emergency cash pot and non pension investments are for.

justme111

when you know that you sorted from 55 onwards it takes the pressure off now so it does benefit now .

Escapar2020

AnotherJoe wrote: »

It wouldn’t be 20 years. At present it would be 10*, when you are 55. In return for that you’d get a massive tax benefit.

The penny is starting to drop

Escapar2020

AnotherJoe wrote: »

IMO posting on the MFW board is unlikely to be helpful to you, as it seems mostly populated by people self congratulating themselves on the sacrifices they are making to get rid of their mortgages, and ignoring other options such as significantly improving their pension position via tax relief.

My apologies to the MFW denizens if I’m doing them a disservice but you rarely see anyone there pointing out how much money they lost by forgoing 40% tax relief, instead it’s all about how they sold something on eBay for a tenner and how thats reduced their mortgage..

That's why I thought I'd drop in here, glad I did

Escapar2020

AnotherJoe wrote: »

Any more comments on what to do with the money is really dependent on the age you plan to retire and how you’d bridge the gao between then, being able to claim private pensions at age 55, works pensions at various later ages, and then SP at 67 or so. Eg you need a plan. And that plan should most likely factor in being able to take 20% free money sav3 now, at age 55 .


*Nothings guaranteed but it also seems likely that you are safe for it remaining 55 for you since they would most likely give 10 years notice.

You're right about needing a plan, thats partly why Im here so I can work out what my options are. I'm not sure what sort of retirement I want, semi or full, I think semi ASAP, possibly leading to full much later. What ever plan I make now will probably change, the main thing I want is the flexibility to make more choices about life and work.

Oh, and if anyone can tell me how tonuse the multiquote tool on here, id be grateful!