avc one off payment or percentage?

[Hawkey99]

Thats a tough question and everyones answer is different.

Currently from a returns point of view it would be better to invest more and pay less mortgage. But everyone is different and many look to the comfort blanket of paying off their mortgage.

Also age is a major factor as there is a view that inflation and therefore mortgage rates could go viral in a few years.

Returns massively favour investing but there are many things to consider.....

All in my opinion and not advice.....We are all different....

[NorthernBoy]

so would you prioritise increasing avc to 20% or £100 a week ahead of overpaying on your mortgage?

Personally I am putting every spare £ into my pension over paying down my mortgage. For me the tax benefits and potential growth on the pension will be higher than the interest on the mortgage. This of course is not guaranteed.

I have no intention of paying of my mortgage and at some point I will sell the house to my partner and take out another 25 year mortgage which I will be paying off well into my 70s in retirement.

If going all in on your pension is to much, why not split any extra between the two.

It’s also worth thinking about what age you would like to retire and how much income you want. Once you know these numbers you can adjust your retirement plan.

There is some good advice on this board, keep asking the questions.

[RobertT]

I've read comments on here and other sites from people who will still have a mortgage into their 70's, while I know a few others personally who are in their 60's and can't retire because they still have a mortgage.

So from a money point of view it comes down to how much income you'll have in retirement, and from a personal point of view it depends whether you want the security of knowing your house is paid for.

The maths says paying into a pension is better, because the returns are likely to be greater than the interest rate on your mortgage. But that home loan can be an albatross around your neck for a long time.

Everyone is different and there's no correct answer. So:

Take your time deciding what to do, without procrastinating too much
Weigh up all the pros and cons financially and practically
What somebody else does is irrelevant, do what's best for you and your family