Reduce Pension Contributions?

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AL2016

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Hi all


Just wondering if anyone has thoughts on this..


I've been contributing 20% of my income to a pension fund over the last few years. Its not quite maxing out the contribution based on my age but it's what I considered affordable.

My consideration now is would I be better off during this unstable period putting this money as an additional payment to my mortgage. I can see my pension fund value has basically dropped to what it was a year ago.

My instinct to to continue with the pension payments to provide for the best retirement i can but similarly making large over payments on the mortgage is attractive to me.
 

Key Post - Overpay mortgage or contribute to pension or do something else?

This comes up in a lot of different threads, so I will set out some principles here to kick off the discussion. I will edit it in the light of feedback. There are many options with your savings in excess of your emergency cash fund Pay down your mortgage Build up a fund to enable you to trade...
www.askaboutmoney.com
Some might argue that times of market turbulence and stock market falls are the very time that you should stay the course with long term pension and non-pension equity investments!

What are the details of your mortgage?
What are the details of your pension - type, charges, asset allocation etc.?
 
This is generally the best time to increase pension contributions to take advantage of lower asset prices. However, it is best to factor in all of your circumstances when making financial decisions. It may be that paying your mortgage down quicker is the best thing for you to do for your financial security, but it seems unlikely that anything happening in the markets has suddenly caused this to only now be the correct course of action.
 
Ideally you want to Buy low and sell high.
So keep it going.

Personally, I moved a portion of my current pension assets to cash.
But am continuing to put all my future contributions into 100% equities.

So as stock prices go down, I don't lose as much, but I continue to benefit from buying at lower prices.
 
In hindsight i wish id moved to cash a few weeks ago when this turbulence was well signalled. I didnt and so now the best course is to stay contributing the max that I can to equities to avail of cheaper units.
 
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