The Case of the Overwhelming Mortgage

AgathaSquirrel

FtbDreaming said:

I was trying to understand my pension last night when Martin Lewis was on the telly. Mine is a defined benefit I think (it’s nhs) with final salary. Dunno anyway according to the statement it’s worth about £900 a year upto now that’s after 4 years contributions. I’ve got about another 20-25 years left in me I reckon. I definitely don’t wanna work past 60. 

I might be a negative nancy but I’m also weary of what if I don’t even live to draw it? That’s a waste of money lol. I do find pensions mind boggling! 

At least our MFW ambitions will hopefully have us a roof over our heads that’s paid for when we do get to pension age x

The NHS pension is a great pension. I’ve been contrasting this against my husband’s and there is no contest. I currently have £8000 and £25,000 lump sum in my 1995 pension and £3000 in the 2015 career average pension. I am in the process of buying back 3 years in the 1995 pension and from the McLeod judgement I intend to move my 2015-22 payments back to my 1995 pension. I hope I will be in a position to retire by using my 1995 pension and lump sum to retire when I’m 60. I also have a small standard life AVC which will give me another £600 a year. My husband based on what he is currently saving into his pension, and this is with additional contributions will have a pension of £4000 a year at 60, so we will be largely reliant on my NHS pension until state pension and my additional NHS pension at 67.
I have come to the conclusion it is worth thinking about pensions now, in addition to overpaying the mortgage, whereas I’ve largely been focused on the mortgage until now. I do agree about overly investing in pensions though as there is no guarantees we will live to need it. There is a lot to be said for living in the moment too.
I had a look at Martin’s post today on pensions, which I found extremely helpful, but I’ll have a look at the TV programme too - thanks for that.

AgathaSquirrel

£200 overpayment in. Now to track mortgage for reduction in capital and interest.

caeler

Good luck @AgathaSquirrel You are in good company here!  Remember it is a marathon not a sprint!  A lot of people here are trying to balance mortgage with pension. 

Nurse2047

AgathaSquirrel said:

Trying to make sense of husband’s pension fund this morning. He pays £200 a month at the moment but wondering about adding another £50. I don’t really understand his work pension scheme. Need to do some more reading and make sense if it.

Hi check out the pension board they have given me great advice recently 

AgathaSquirrel

Interest is now down to 5.97 and the next mortgage payment should push us down to the £102000s. Getting closer to double figures.

caeler

That’s an exciting milestone! 

AgathaSquirrel

It is. It will feel slightly more manageable in double figures. The 3 figures has always horrified me.

AgathaSquirrel

Down to 102000s today. Hopefully manage another overpayment later this month.

AgathaSquirrel

Interest down to £5.95 today, that is a 50p reduction since I started tracking interest, £15 a month reduction. 

AgathaSquirrel

Another overpayment added, now down to £5.91 interest. Making progress but still stuck in 102000s.