BigMatt:

If you are willing to take advice on this forum then you should be willing to speak to an IFA?

One big difference is that it is very very easy to read comments on a forum (or in newspapers and magazines) and then ignore them.

I am sure that there are some good IFAs but there are also many who will point people in the wrong direction and, after sharing a coffee in someone's office, it isn't always easy to simply walk away and ignore someone's suggestions. It is a huge step to say that someone should put some or all of their financial affairs into the hands of a stranger.

Why no?

The only appropriately qualified people to advise you on this are IFA's?

If you are willing to take advice on this forum then you should be willing to speak to an IFA?

What is the fear in speaking to an IFA?

no thanks though

Best to get an IFA to look at this for you. I can recommend someone if you like.

If you don't understand, you certainly shouldn't send more money.

Normally with a pension the big plus is that you get tax relief so if you pay 20% tax, you can pay £80 and HMR&C will give back £20 so that £100 goes into the pension. The minus is that you can only get at the money when you retire and then only through an annuity (there are a few exceptions - you can get part of the pension pot as a lump sum, for example). Another minus is that some pension schemes have high charges. Another minus is that annuity (and other pension payments) are taxable.

If you pay off your mortgage it'll show clearly where the money has gone on the annual statement. When the house belongs to you, it is yours to do with as you wish. Should you then wish to swap the house for a VW Camper and a hugh stash of hash, then that's your choice to make.

Without knowing the details of the pension scheme, it's impossible for anyone to say what is best other than to say that, if you don't understand it, don't do it.

Hi

I am quite ‘Pension illiterate’ – so please consider this when reading this post!

I have recently been transferred from a final salary pension scheme, paying in from 2000 when I was 21, to a CARE scheme. I don’t fully understand the CARE changes – but my assumption is that I am going to be less well off at pension age. So, I am considering adding to my pension contributions through my wages at the next opportunity.

I wonder if it is better to increase my pension contributions or to over pay the mortgage!?

My details:
Age: 34
Pensionable salary: 27k
Accrued pension: £5500 per annum
Final Salary Protected Percentage (when changed to CARE): 20%

Mortgage (repayment): 50k
Term: 25 year (23 left)

Thanks