contribute more to pension?

C

cuttingthegrass

New Member
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Long time lurker but first post

Personal details

Your age: 45
Your spouse's age: 41
Partner's age if not married:

Number and age of children: 3 kids, age 10, 8, 6


Income and expenditure
Annual gross income from employment or profession: 65k as salary from Ltd company
Annual gross income of spouse/partner: 70k public servant

Monthly take-home pay: 6,500

Type of employment - I am self employed
my spouse is public servant

In general are you:

- Saving


Summary of Assets and Liabilities
Family home value: 750k
Mortgage on family home: 115k
Net equity: 635k

Classic cars 150k
Cash: 15k
110k cash in Ltd company account
115k in executive pension (3,500 per month contribution direct from busineess)
40k in child benefit zurich savings account (480 per month contribution)



Total net assets:





Other borrowings – car loans/personal loans etc

zero

Pension information

110k in executive pension (late starter to this and now contribute approx 3,500 per month)
spouse will have DC scheme pension, also makes 500 per month AVC contribution

We will both also qualify for the Full Uk old age pension and full Irish Old age pension

Buy to let properties
Value:
Rental income per year:
Rough annual expenses other than mortgage interest :
Lender
Interest rate
If fixed, what is the term remaining of the fixed rate?

Other savings and investments:


Other information which might be relevant

Life insurance:


What specific question do you have or what issues are of concern to you?
After a few years building up a business building a house etc I can eventually contribute to a pension in a meaningful way.
We really have all we want in life, healthy kids, nice warm A rated home, holidays, classic cars etc.

Business/ work is physically demanding so ideally I would like to slow down/retire before 60.

I am starting to build up some cash in the business and wondering if contributing to my pension more is the best option so as not to leave too much cash in the business?

Any suggestions/ observations welcome

Thanks
 
Assuming you have a good handle on business cash flow, why not use the excess cash to pay off the remainder your mortgage? 3500 pm contribution to pension seems plenty, and paying off the mortgage means your salary goes further re day to day expenses etc. Classic cars sounds fun. :)
 
MelF said:
Assuming you have a good handle on business cash flow, why not use the excess cash to pay off the remainder your mortgage? 3500 pm contribution to pension seems plenty, and paying off the mortgage means your salary goes further re day to day expenses etc. Classic cars sounds fun. :)
Click to expand...
The cash in the business is nowhere near enough to clear the mortgage.
 
Any money extracted in salary from the business will be taxed so not near enough there by a long way to clear the mortgage.
I could direct money towards clearing the mortgage as opposed into the pension but I always thought the pension was a better option. Maybe I am missing something?
 
To go back to your question, pension is undoubtedly the best avenue for you now, particularly if planning early retirement by 60.
 
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