AVCs or overpay mortgage

[Westsider79]

I'm a civil servant aged 44 on 78,000 with 19 years service. Previously paid into AVCs but since I got a promotion a year ago I stopped. I would like to retire at 60 but would have 5 year shortfall in full pension contributions.
My spouse earns 50,000 and is maximising pension with AVCs and is projected to have a pension pot of around 400000 at retirement.

We have no debt other than mortgage of 230000 with 20 years left at 2.5%(due to end March 2024) and have rainy day savings of around 15,000.
We rent a room to students which generates around 7k per annum and wondering whether to put this and other surplus income into AVC or mortgage?
Appreciate any advice here, thank you.

 

[ClubMan]

I would focus on getting the mortgage down to a more manageable/comfortable level first especially if you're likely to see a significant jump in interest rate/repayment next March. Although maybe you can afford to do that and also make some AVC contributions? It's impossible to say based in the info posted. Maybe needs a Money Makeover post?

Money makeover

Budgeting and dealing with debt moved to Mortgage Arrears and Debt Forum .

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[Brendan Burgess]

Overpay mortgage or AVCs?

Personal details Age: 44 Spouse’s/Partner's age: 45 Number and age of children: Two 13 and 11 Income and expenditure Annual gross income from employment or profession: 74000 Annual gross income of spouse: 50000 Monthly take-home pay: Me : 3986 Spouse: 2,955 Type of employment: e.g. Civil...

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