Am I doing this right?

fullofcold

We are in our mid forties.  Life has been expensive until now as we are both paying child support, etc.
Anyway my husband was made redundant in November and that has focussed the mind to repaying the mortgage/savings/pension as we don't have that long to get rid now.  He did walk into another job but it is 30k less salary per annum.  We can still afford some savings and all the bills so not worried about base income, however I do earn commission on a monthly basis normally and am considering utilising this to pay towards the mortgage/pension/savings.  Currently we have the following:
1. Mortgage - 1.95% apr - 4 more years on the fixed rate.  Paid 20k off when DH was made redundant (reduced monthly payment to make our bills more affordable) so now down to 178k
2. Pension - DH has an employer pension.  I have an employer pension.  I also have a final salary from a previous job.  Mine is on track if I retire at 68.  DH we haven't got details for yet
3. Savings - Currently have 3 months salary in savings - Interest rate is 0.75% - Don't have any other significant savings currently as just moved house and renovated some of it
4. Insurance - Life to cover the mortgage, Life to provide for the kids until the youngest is 23, IPB for me, IPB for DH

We can't commit a specific amount to investments monthly, or to anything currently to be honest as my commission is not guaranteed and not regular.  However I was thinking of doing a 4 way split of my net commission.  1 x lump off mortgage and reduce term now, 1 x lump into my pension to top it up/potentially retire at the same time my husband does (he is 4 years older), 1 x savings account until we can start investing, 1 x into spends for things we may want but might not normally get/do.

Does anyone have any thoughts in addition to mine currently?

MaxiRobriguez

I guess I'd start with trying to up the savings. You say life expensive and has been hard - 3 months therefore isn't a lot if things get harder still. Perhaps aim for 6?

Difficult to advise on the other things as you don't give full picture, but £178k mortgage between two is bearable even if rates rise. Likely to be better to put more towards pension, take advantage of tax minimisation. More details on your current pension situation would be handy but for example if both of your employer schemes were DC's and accessible at 55 then you could use the money you haven't paid off the morgage, to put towards employer pension scheme instead, then in 10 years time take the TFLS to overpay the mortgage. That's more efficient by at least 15% purely because tax avoidance is nice and mortgage rates are low.

Anyway, more details required if you're willing to provide.

barnstar2077

The age that you can access a private pension is rising to 57 from 2028.  Just to add my two pence. 

Albermarle

Pension - DH has an employer pension.  I have an employer pension.  I also have a final salary from a previous job.  Mine is on track if I retire at 68.  DH we haven't got details for yet

As mentioned the details here could be clearer. Presume your current employer pension and you husbands new pension are both standard workplace DC schemes where you just basically accumulate a pot of money over the years ?

In this case not sure what the significance of age 68 is ?