Thoughts, advice etc. on sorting out my pension-saving situation

TiredDonna

atush wrote: »

I would put more into your pension. It looks like you made your mtg a priority over pensions int he past, which with the very low rates isnt always th best idea. So you have some catch up to do.
But 10 years in the TPS is going be a nice base to be working from. call them up and ask the current projected value and come back.

I logged in to TPS yesterday, looks like £3500 per annum (I was thinking it'd be more like £350!).

I nearly lost my house a few years ago after the end of a relationship, so paying off my mortgage was very important to me emotionally.

I think that increasing my pension payments make more sense than putting money in to a LISA, but I should revisit that before I turn 40.

kidmugsy

TiredDonna wrote: »

I think that increasing my pension payments make more sense than p, but I should revisit that before I turn 40.

If you can use salary sacrifice, yes. If not, very likely no. Without salary sacrifice it doesn't make much sense for a basic rate taxpayer to contribute to a pension unless she can harvest extra employer contribution by doing so.

The counter argument is that you might have a few years as a non-taxpayer when you can take pension money out tax-free from age 55 (or 57, or 58, or ....). But then you can always take LISA money out tax-free once you are 60.


In your shoes I'd be tempted to use the LISA in hopes that at age 60 it will be tax-efficient to start to empty the LISA and use the money partly for contributing more to a pension. Two tax breaks in a row: yum, yum.