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Overpaying pension on UC? Or overpaying mortgage?
CatLover30
Posts: 3
Newbie
Hello,
I didn't realise for years I was entitled to UC, I was also a student for many years. This has resulted in me habitually not spending much. Now that I have UC money is building up in my account very quickly and has taken me over the savings limit (though this is currently disregarded due to being backdated benefits payments).
I don't know what to do about this. I could:
1. Overpay mortgage. Though my interest is only 3.59 percent for the next 5 years.
2. Pay extra into workplace pension. This would be quite efficient as I am taxed at 40% and then UC is reduced by 55p for ever £1 earned. I am not so good at maths but I think this means that to put £1 into my pension I would lose 27 pence from my actual money available.
3. Give the money to my dad. My dad has always been very generous including giving me 50k to buy a house. However, he now has no job, home, income or pension (except state pension). He is over 100k in debt on cards and considering a debt solution. He previously had income over 500k but I guess had some spending/budgeting issues that might be ongoing.
What would you do?
I didn't realise for years I was entitled to UC, I was also a student for many years. This has resulted in me habitually not spending much. Now that I have UC money is building up in my account very quickly and has taken me over the savings limit (though this is currently disregarded due to being backdated benefits payments).
I don't know what to do about this. I could:
1. Overpay mortgage. Though my interest is only 3.59 percent for the next 5 years.
2. Pay extra into workplace pension. This would be quite efficient as I am taxed at 40% and then UC is reduced by 55p for ever £1 earned. I am not so good at maths but I think this means that to put £1 into my pension I would lose 27 pence from my actual money available.
3. Give the money to my dad. My dad has always been very generous including giving me 50k to buy a house. However, he now has no job, home, income or pension (except state pension). He is over 100k in debt on cards and considering a debt solution. He previously had income over 500k but I guess had some spending/budgeting issues that might be ongoing.
What would you do?
0
Comments
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What do you mean by 'UC'?
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universal credit0
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Thanks. I don't understand how you earn enough to be taxed at 40% and still qualify for UC?
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It's actually not unusual. It is due to having disabled family members.1
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Depends on the elements of uc apply. There could be multiple children, disabilities with different family members and one person might be a carersquirrelpie said:Thanks. I don't understand how you earn enough to be taxed at 40% and still qualify for UC?2026 wins - Parker Pen American Sweets bundle 2x dish magic bundle NEU shots & a NEU training T-shirt ToeZone Shoes Worth £32
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