Pension or House Deposit?

Edmond_2

NoMore wrote: »

The problem with the 'but its only for a short while, I will have the money once 'X' is out of the way' Is there is always a Y and then a Z that turn up that then has you kicking the can further down the road.

Why at 35 do you already have "virtually no existing pension between us" ? Is it because you have always been delaying Pension contributions for some other excuse?

Sorry to be harsh but you are robbing from your future self , and you can bet your future self will be furious with you when its comes to living in retirement.

I do feel that my situation is slightly different here - as stated previously, my son will start to receive 30 hours free childcare next spring, my credit card and car will be paid off and we will both get a 4k pay rise. Our household will suddenly have an extra £900-£1000 to play with. We can more than afford to pay into the pension, and pay for whatever else we need to.

NoMore

Edmond wrote: »

I do feel that my situation is slightly different here - as stated previously, my son will start to receive 30 hours free childcare next spring, my credit card and car will be paid off and we will both get a 4k pay rise. Our household will suddenly have an extra £900-£1000 to play with. We can more than afford to pay into the pension, and pay for whatever else we need to.

It really isn't

atush

Edmond wrote: »

This was the original question - is it worth halting the pension for five years and getting a house?

No. join the pension, pay off debt THEN and only then save for a house.

atush

xylophone wrote: »

He was "at work" in the sense that he was an Environmental Health Officer out on call - my recollection is that another vehicle struck a bollard which flew up and through the window of his vehicle - injuries sustained resulted in his death.

Car insurance would pay for this then. So again, there would be money coming to the family.

But still no reason to leave a gold standard DB pension.

Edmond_2

atush wrote: »

No. join the pension, pay off debt THEN and only then save for a house.

I have to pay off the debt first as these are minimum payments. Otherwise I would be prioritising the pension.

xylophone

Does this essentially mean I would no longer need to consider a life insurance policy, as the pension effectively acts as the same thing?

No - the death benefits would be unlikely to pay off your mortgage/any other debts for example?

And there would be a requirement for other capital sums in the future which the pension income might well not meet?

atush

Edmond wrote: »

I do think you have to strike a balance, and there's a definite bias in this forum towards what I would I characterise as penny pinching. If you want to save every penny for your retirement fine, but are you going to regret not living your life when you were young? I'm not saying jack-in your pension and buy a Mercedes, but there seems to be this assumption that if you cut Sky and Netflix your debt will go away and you'll retire quids in.

I totally agree, not paying in at all is madness, but that's not what I'm suggesting. I'm going to have the money freed up in 9 months time. Do I use it for the pension, or save for a house?

There seems to be a consensus around the pension, but I don't think the benefits of owning a house outright by retirement have been fully explored.

I think what I'll do, probably tomorrow, is re-do my figures with the latest assumptions and post them so you can see how the finances in retirement balance out, and people can tell me if there's anything I haven't considered.

I live a very non frugal life. I dont pinch pennies, i save where i can but have Sky and Netflix.

There is no reason you cant cut costs in your budget somewhere that wont hammer your lifestyle. Like Make lunches at home to bring to work (we have done this for over 20 years) dont buy poncys coffees all the time, just as a treat. Look for cheaper insurance, utilities etc.

Just join the pension. Save what you can for the house after joining.

WE were late homebuyers (as had lived in a place we werent allowed to buy) and we were woried about paying the mtg off before retirement. So we boosted our overpayments (after joining work pensions etc) later. Now it will be paid off before retirment. Could pay it off today (is just 5K on a house work 800K) but arent bothered.

atush

Edmond wrote: »

I have to pay off the debt first as these are minimum payments. Otherwise I would be prioritising the pension.

Then you are overspending somewhere if you cant fund at least ONE of your NHS pensions on 66K.

xylophone

Car insurance would pay for this then. So again, there would be money coming to the family

.

But this would not provide the ongoing income provided by the pension death benefits.

My intention was not to dwell on the way the person died but rather to point out that in the event of death from any cause, the DB pension protects the widow/er and children.

atush

I know that, but you said died at work so it threw up a red flag. Some places (non DB pension) also have death in service payments. A factor of salary usually.

But for those with DB pensions, you need to join to get cover.