Pay off mortgage early or Pension?

[milanbenes]

eh Shaun,

happy new year

Milan.

[shaunbhoy]

eh Shaun,

happy new year

Milan.

You too benesy!

[AtW]

Pay off mortgage first, in all probability you won't get your pension anyway - it's much easier to raid pension funds than homes with extra tax.

[Muttley08]

mortgage.....then ISA....pensions are way after that...any IFA's who tell you otherwise are after commission

[GreenerGrass]

mortgage.....then ISA....pensions are way after that...any IFA's who tell you otherwise are after commission

Try and do all 3 if possible, personal circumstances and the uncertain future of the housing and stock markets mean there is no right or wrong, so best not to put all your eggs in one basket.

The ratio of mortgage overpayments to pension payments can be tricky to decide, someone who has been burned in the stockmarket may say screw pensions and pile everything into paying off the house first.
But another way to look is that this year and the next few years could be the best time to invest in the stockmarket for the long term, and Milan makes a point on inflation lessening mortgage burden over time. Then there is the considerable tax saving and IR35-busting aspect of paying company contributions into a SIPP. This may not last forever.
The danger of just paying the house off and putting nothing into a SIPP/ISAs until mortgage-free is that by the time you start the stockmarket may be toppy and poor value. Better to take advantage of pound cost averaging over time.
However if you bought a house with a mortgage based on contractor income the priority should be to get the mortgage down to a level that an impoverished permie could still afford.

[singhr]

Pay off mortgage first, in all probability you won't get your pension anyway - it's much easier to raid pension funds than homes with extra tax.

WHS

[Shimano105]

Milan recomends getting a mortgage

Honestly, I luv im to bits but he is such a tool!

[Fred Bloggs]

Try and do all 3 if possible, personal circumstances and the uncertain future of the housing and stock markets mean there is no right or wrong, so best not to put all your eggs in one basket.

The ratio of mortgage overpayments to pension payments can be tricky to decide, someone who has been burned in the stockmarket may say screw pensions and pile everything into paying off the house first.
But another way to look is that this year and the next few years could be the best time to invest in the stockmarket for the long term, and Milan makes a point on inflation lessening mortgage burden over time. Then there is the considerable tax saving and IR35-busting aspect of paying company contributions into a SIPP. This may not last forever.
The danger of just paying the house off and putting nothing into a SIPP/ISAs until mortgage-free is that by the time you start the stockmarket may be toppy and poor value. Better to take advantage of pound cost averaging over time.
However if you bought a house with a mortgage based on contractor income the priority should be to get the mortgage down to a level that an impoverished permie could still afford.

IMO, that is all very sensible advice.