Overpay into DC pension?

JillyC8

Thrugelmir wrote: »

What funds are you investing in? While the 25% TFLS is attractive. Investing should be viewed as long term. You may find yourself disappointed with the market value when you reach 55. There's no harm in overpaying your mortgage. Leveraging with debt against investing is a double edged sword. While there's huge upside , there's a very real possibility of a huge downside.

I haven't delved into how my pension is invested... this is something I'll need to get my head around next I think as there are options to choose on how the pension fund is invested... different risks etc. At the moment I'm paying my mortgage down as much as I can although it feels like quite a mountain to climb! It may seem low to some on here but I'm doing it alone and I'm looking for a way to speed it up.

JillyC8

bluenose1 wrote: »

My DB pensions if I take at 55 will be approx £8,000 per year and my SP at 67 £8000 so I reckon from 67 I am fine income wise. And that's not even counting my husbands pensions.
You need to ask your DB Pension provider what the actuarial deduction will be if you take at 55.

You're in a good position Bluenose1 ... my situation is a little different as I'm single with two teenagers both due to turn 18 in the next 2 and 3 years respectively so I'm facing a big drop in income due to loss of child maintenance.

The only way I could seriously take the mortgage down to a level where I could work part time would be by transferring one of the pensions into a DC pension then drawing down. I'm hoping to make my situation easier by 60 if I can, then hopefully semi-retire at that point. Or maybe I should just get married again! :D

Thrugelmir

JillyC8 wrote: »

At the moment I'm paying my mortgage down as much as I can although it feels like quite a mountain to climb! It may seem low to some on here but I'm doing it alone and I'm looking for a way to speed it up.

Debt is debt. One of my favourite old Chinese proverbs is "A man who wishes to move a mountain starts by moving the smallest stones first".

Rather than risk which comes in a multitude of facets. The historical data shows that on average major stock markets rise twice and fall once every 3 years. With a deviation of somewhere between +26% and -12%.

JillyC8

xylophone wrote: »

Will your current provider accept a transfer in? Some are twitchy about accepting transfers from DB pensions, however modest the CETV.

I don't know about this ... looks like I have a lot of homework to do...

Albermarle

I don't know about this ... looks like I have a lot of homework to do...

These things are easier than you might think.
The aviva website is quite user friendly and will give you info about different risk funds etc If you get on line access you can change them yourself .
Regarding transferring pensions into aviva , then suggest you read this https://www.aviva.co.uk/retirement/pensions/transfer-your-pension/
and yes they do accept transfer of defined benefit schemes worth less than £30K

JillyC8

Albermarle wrote: »

These things are easier than you might think.
The aviva website is quite user friendly and will give you info about different risk funds etc If you get on line access you can change them yourself .
Regarding transferring pensions into aviva , then suggest you read this https://www.aviva.co.uk/retirement/pensions/transfer-your-pension/
and yes they do accept transfer of defined benefit schemes worth less than £30K

Thanks for this info Albemarle, I do have online access so will read up on this in detail.

I've seen the area where I can change the investment but don't feel confident changing anything. I'll see if I can get my head round it later.