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Retirement plans - should I pay off mortgage or buy extra pension years?
55+
Posts: 2 Newbie
I hope to retire in five years time (aged 60) when my final salary occupational pension can start. I'm overpaying my flexible mortgage and I'm on course to pay it off by my intended retirement date. My pension will be fairly modest and could do with being topped up. I wonder it might make more sense for me to decrease (but not stop) the mortgage overpayments, use the money to buy some additional pension years, and then use part of my pension lump sum to pay off the mortgage on retirement.
Any thoughts would be greatly appreciated. Thanks.
Any thoughts would be greatly appreciated. Thanks.
0
Comments
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Yoiu'd need to obtrain all the figures from the pension scheme on the plan first.Are you a higher rate taxpayer?
What will be your tax situation in retirement ( pension income is taxable)
You could be better to make additional savings in a stocks and shares ISA, which is not taxable.Trying to keep it simple...
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Many thanks, EdInvestor - that's very helpful.0
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