I'm intrigued how many IT contractors value paying off the mortgage early ahead of building up a big pension, or indeed any pension.
The reason IT contractors tend to be "different" to the general population is we tend to have a higher disposable income, but no employers pension contributions. For permies with a generous pension scheme its more of a no brainer.
For contractors the temptation to make big mortgage overpayments, and into easy access investments like funds/ISAs, rather than into a pension is thus greater, especially if you think a bear market is looming and you have little control over exactly how its invested. Some pension funds are using bonds which are going to barely outperform inflation.
Any opinions?
Obviously a £500,000 pension is not much use if you drop dead at 67, whereas if you pay the mortgage off early you can go into semi-retirement a lot earlier, while you're still physically active and have your health.
After all, if you end up with naff all the government will bail you out in the end.
The reason IT contractors tend to be "different" to the general population is we tend to have a higher disposable income, but no employers pension contributions. For permies with a generous pension scheme its more of a no brainer.
For contractors the temptation to make big mortgage overpayments, and into easy access investments like funds/ISAs, rather than into a pension is thus greater, especially if you think a bear market is looming and you have little control over exactly how its invested. Some pension funds are using bonds which are going to barely outperform inflation.
Any opinions?
Obviously a £500,000 pension is not much use if you drop dead at 67, whereas if you pay the mortgage off early you can go into semi-retirement a lot earlier, while you're still physically active and have your health.
After all, if you end up with naff all the government will bail you out in the end.
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