Reduce pension contribution to overpay mortgage/save

Mat_Lock

Thanks all for your advice. I think I shall just stick to what it is now and try to cut back somehow. I have done all I can so far to reduce outgoings like broadband, tv, utilities, phones etc. Childcare costs are more than my wife would earn and she'd rather be at home with him for the next 2 years than have someone else look after him every day.

pensionpawn

Being home with the kids is priceless. You can't turn back the clock so make sure you (both) enjoy their childhood. My youngest turns 18 in the summer and the time has flown by. I started my first private pension when I was 23 at around £30 a month. I stopped paying into this pension after around 6-7 years as I joined a company (DC) scheme and I believe at the time I couldn't keep both going. 30 years later that first pension has just crept into 6 figures. If it wasn't for that pension I would not be able to retire in the next 5 years, and that's what keeps me going at times! I probably didn't contribute more than £5k in total. My point is that keep those small contributions going because if you eventually decide to go for draw down your pension will remain active for longer than you've been contributing to it to date. This will give you peace of mind in the years to come. From my own experience I've drilled into my children the importance of contributions from an early age, whatever the level. My 17 year old already has a balance of £250 in her pension (her employer matches her 7.5% contributions!). I wonder what the balance will be in 43 years time? A break will come for you with the house. Me and my wife were living in a 2 bed semi when she gave up work to look after our daughter. So I lost an income, gained a mouth and at the time my house was in negative equity. However after a couple of failed interviews the ideal job came along. Stay positive and keep the contributions going!

Mat_Lock

Thanks pensionpawn I guess I have house/garden envy haha

justme111

Yes you do . In a few years time when children will be 4 your wife will start working and mortgage is going to be less heavy due to inflation and the children will appreciate the garden that you will hopefully be able to afford then more