AVC or mortgage overpayment

nicknameless

It's been said before but sal sac AVC, especially which you can take tax free or a chunk of tax free, is absolutely a no brainer vs saving a little interest on a mortgage.  It's my pet despair seeing people pay of their mortgages in lieu of using the money more productively.  National obsession.

HedgehogRulez

Pension is the correct answer.

crv1963

Another vote for the pension, for all of the above reasons. You could however split the savings and put enough in the AVC to avoid HR Tax and the rest off of the mortgage. The psychological effect of having paid down the mortgage is however great, we used split overpayment as I suggest and then some of the lump sum from my pension to clear it.