Good pension for my age?

Bemma

“
Aren't interest only domestic mortgages rarer than hen's teeth?
Originally posted by westv
”I don't know of any currently available. The longest possible term is next best./QUOTE]

Offset mortgages are available, I would say they are even better...

jamesd

Bemma wrote: »

Offset mortgages are available, I would say they are even better...

I have an interest only offset life of mortgage tracker. Excellent combination for me!

Offset only saves the mortgage interest rate. Low at the moment compared to investment expectations long term but useful short to medium term instead of savings accounts. Very useful if interest rates increase a lot.

So I wouldn't say better but still useful.

Alexland

Oliver1191 wrote: »

You're doing terribly

The OP is aiming for retirement at 68 not the FIRE that many of us seek (and make enhanced contributions towards) and on that basis they are not doing terribly.

I am also a believer in front-loading your career earnings having accumulated around £315k in pensions at 38 that without making any further contributions it might already meet my early retirement needs. Still I keep contributing to be tax efficient and reduce the risk of my future growth assumptions being incorrect.

Alex

Oliver1191

The OP is aiming for retirement at 68 not the FIRE that many of us seek (and make enhanced contributions towards) and on that basis they are not doing terribly.

I am also a believer in front-loading your career earnings having accumulated around £315k in pensions at 38 that without making any further contributions it might already meet my early retirement needs. Still I keep contributing to be tax efficient and reduce the risk of my future growth assumptions being incorrect.

I did use strong language, maybe an overexaggeration i was just trying to highlight that the op can choose to do a lot better... i suppose if the op wants to compare, they might choose to do so with people of a similar age and income position.

To be honest, i'm going to take some of my own advice and contribute more to my pension!

Alexland

Apparently some people actually enjoy their jobs and expect that might continue until retiring at a normal age.

I noticed that my pension contributions increased as my work responsibilities accumulated and I started dreaming of a better life. I add just enough each tax year to avoid higher rate tax due to the LTA risk. I keep thinking 'only a bit longer and I'll take a pay cut and get a job I enjoy again' but the lure of making good use of pension, LISA and ISA allowances keeps me going...

Alex

Oliver1191

Apparently some people actually enjoy their jobs and expect that might continue until retiring at a normal age.

I noticed that my pension contributions increased as my work responsibilities accumulated and I started dreaming of a better life. I add just enough each tax year to avoid higher rate tax due to the LTA risk. I keep thinking 'only a bit longer and I'll take a pay cut and get a job I enjoy again' but the lure of making good use of pension, LISA and ISA allowances keeps me going...

Sounds like we're in a similar position.

Yeah, it does seem that the higher the income you take, the less you can see yourself doing that job forever!

I've only built up about 21% of the lta in pensions, and am not a higher rate tax payer. Same age as the op at 36.

Don't think i'm in danger of hitting lta yet...

Alexland

The problem is that investment growth above inflation on existing contributions will eat into a greater proportion of your inflation adjusted LTA. So while I may only have used 30% if the money grows in real terms (above inflation) by circa 60% over the next 20 years then I have already used 50% of the LTA....

Alex

Oliver1191

Even if it nominally increases, i see your concern alex.

Interestingly the op is just shy of 9% of the lta. Given she appears to be already maxing employer contributions, i wonder if she should focus on trying to max the lisa, and build a small isa on the side.

My goal, other than maxing the lisa, has been to build up at least 1 year expenses in the isa. I've pretty much reached that, but am reluctant to stop contributing to my isa at the rate i currently sm (as despite believing in long term investing, i like to have access to the money).

Depending on what wealth the op has accrued, no doubt they will go through these dilemas!

Thrugelmir

westv wrote: »

Isn't that partly why endowments failed?

Yep. Years of good returns were followed by a subsequent period of underperformance. As far as investing is concerned. Nothing should ever be taken as guaranteed. Until the day you are holding either purely cash or cash equivalents.

Funnily enough pension mortgages were the rage around 3 decades ago. Though that fad passed away.

jamesd

Thrugelmir wrote: »

Funnily enough pension mortgages were the rage around 3 decades ago. Though that fad passed away.

Just changed how they were done over time. Pension is part of the repayment strategy for my interest only mortgage given at inception.

Starting around ten years ago the rules changes around interest only mortgages caused firms to reduce offering them for a while. No interest only mortgage with repayment strategy meant no new pure pension or ISA mortgages. Just long term repayment as the least bad alternative.

That's changed and retirement interest only mortgages - from 20 places at the moment - are a particularly welcome development.