Mortage V Pension

starkj · 1 March 2006 at 5:52PM

Should people only consider overpaying a mortgage if they can pay a decent amount in to a pension. Where should the priority lie?

I know this will depend on individual circumstances. I am approaching 42. Should I pay more into a pension now to take best advantage of possible growth or go more towards the mortgage where returns are easir to calculate.

Tricky stuff.

Thefunkygibbons · 1 March 2006 at 6:23PM

This will depend on your own circumstances

What pension do you have now? Employee or personal pension?

bockster · 1 March 2006 at 10:40PM

thats a great point, for me it's the mortgage free route, mainly for the glory of it, then i will be straight onto boosting the pension or long term savings with what would have been the mortgage premium. i know earliest is best with pensions, but i reckon i'm only 1 - 2 years away from mortgage free day, i'll stomach that!

Hawksmuir · 2 March 2006 at 10:56AM

In my circumstances I am paying more off the mortgage so by pension time its gone.
I also have issues with great pensions v free health care for the elderly, if I have a great pension I then have to pay for my health care , if I don't it's free

starkj · 2 March 2006 at 11:05AM

I have a personal pension where I pay roughly 10% of salary.

I have a mortgage of £33,000 which I over pay by £50.

This seems a reasonable balance but once I have cleared other commitments I would like to pay more into one or the other.

Mortage V Pension

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