I have a choice to make and hope you can help me with it.
My work week is reducing beginning next year from 5 days to 3 days a week. I am 4-6 years from retiring.
Currently I am maxed out on pension contributions at 40% tax relief.
The 3 day week will mean I will only be entitled to 20% tax relief on any contributions I make.
Living costs are increasing all the while - two of the kids are in 3rd level and 2 more in next 1-4 years and car insurance for learner drivers (2 persons) is imminent.
The clear choice I have to make for the next 4-6 years before retiring is do I continue with pension contributions that only attract 20% tax relief and fall back on savings to fund the increasing costs or would it be better to reduce pension contributions to zero or the minimum necessary to also get the employers contribution.
Currently have savings 180k, pension pot 170k and mortgage of 40k. No other loans.
My wife works full time and has a pension pot of 160k and she contributes 16k p.a and her employer 4k p.a.
I'm thinking perhaps run with reducing my contributions to zero or minimum, continue in as far as possible with wife's contributions or perhaps partly reduce her contributions from 16k to 10k and utilise savings then as is necessary.
Any thoughts appreciated that might help me to decide the best course of action to take would be appreciated.
My work week is reducing beginning next year from 5 days to 3 days a week. I am 4-6 years from retiring.
Currently I am maxed out on pension contributions at 40% tax relief.
The 3 day week will mean I will only be entitled to 20% tax relief on any contributions I make.
Living costs are increasing all the while - two of the kids are in 3rd level and 2 more in next 1-4 years and car insurance for learner drivers (2 persons) is imminent.
The clear choice I have to make for the next 4-6 years before retiring is do I continue with pension contributions that only attract 20% tax relief and fall back on savings to fund the increasing costs or would it be better to reduce pension contributions to zero or the minimum necessary to also get the employers contribution.
Currently have savings 180k, pension pot 170k and mortgage of 40k. No other loans.
My wife works full time and has a pension pot of 160k and she contributes 16k p.a and her employer 4k p.a.
I'm thinking perhaps run with reducing my contributions to zero or minimum, continue in as far as possible with wife's contributions or perhaps partly reduce her contributions from 16k to 10k and utilise savings then as is necessary.
Any thoughts appreciated that might help me to decide the best course of action to take would be appreciated.