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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Rate my finances and let me know where I should improve

42 replies

Cherriesandapples1 · 25/03/2026 19:14

I've posted about my finances before, had debt from various unavoidable costs rather than buying too many nice things unfortunately. I've spent the last couple of years trying to change my financial situation and had quite a big change around in my finances the last 12 months or so.
I'm interested to see how people would rate my financial situation on average for my age and so I can compare it to what people were saying previously. Also if there's anything you would do to improve
I'm 34, live alone
I own a house worth roughly £220k with around £60k mortgage and 12 years left to pay
No other debt anymore thank god
Income around £44k a year gross
About £8.5k in savings
Around £1k in a&s ISA.
Just joined pension fund recently, luckily decent Defined Benefit pension so should be able to catch up a little on retirement fairly quickly hopefully

Score me 0-10 on how you think my financial situation is for my age and what would you do to improve further. I've spent the last few years with debt and now I've got some savings behind me I'm trying to work out how I'm doing now and what I should be looking to improve

OP posts:
Original poster
Cherriesandapples1 · 25/03/2026 19:44

Enrichetta · 25/03/2026 19:40

Can you pay additional voluntary contributions to your DB pension? Likely to be more valuable than starting a SIPP.

Focus on maximising pension and S&S ISAs rather than overpaying on the mortgage. Much more tax efficient and you have a long investment horizon. Always check fees and charges - use a low cost provider. E.g. AJ Bell.

I have asked work about avcs, they wouldn't contribute any money towards it and it would be defined contribution with roughly 1% management fees, so not sure if very low cost sipp would be better. Also a bit worried if they link it to state pension age like the DB pension. I think they said I would get tax reduction but not NI reduction with avcs

OP posts:
IrishSelkie · 25/03/2026 19:40

Cherriesandapples1 · 25/03/2026 19:37

Potentially, I suppose never guaranteed with health problems or if I need to change jobs or get made redundant. I definitely feel behind on pension at the moment

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Does your defined pension plan include a disability pension provision? Most of them do so you’d be covered in the event of very poor health.

Enrichetta · 25/03/2026 19:40

Can you pay additional voluntary contributions to your DB pension? Likely to be more valuable than starting a SIPP.

Focus on maximising pension and S&S ISAs rather than overpaying on the mortgage. Much more tax efficient and you have a long investment horizon. Always check fees and charges - use a low cost provider. E.g. AJ Bell.

Original poster
Cherriesandapples1 · 25/03/2026 19:37

IrishSelkie · 25/03/2026 19:34

But you’d potentially get 35 years worth ?

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Potentially, I suppose never guaranteed with health problems or if I need to change jobs or get made redundant. I definitely feel behind on pension at the moment

OP posts:
Original poster
Cherriesandapples1 · 25/03/2026 19:37

changedmynameagainforthis · 25/03/2026 19:32

I’d work out how much you need saved in cash. 6 months expenses, maybe slightly more as only you in the house (no other adult to help out in event of redundancy/sickness etc)? Then when I got to that number I’d be putting more into S&S ISA

Luckily sick pay with work is 6 months full pay, 6 months half pay
Redundancy I think would be about £10k maybe . So I think 3 months emergency fund is fairly ok risk wise, but I'm conscious of my car dying on me at some point and maybe saving a bit more for that happening

OP posts:
Original poster
Cherriesandapples1 · 25/03/2026 19:35

1980isitjustme · 25/03/2026 19:32

I would suggest you consider overpayments on your mortgage, but you need to weigh it up against the returns you’d get in savings so it all depends on your mortgage rate and whether it allows over payments.

My savings account interest are basically identical at the moment, mortgage rates fixed for the next 3 years, hoping savings interest might go up a little now mortgage rates are on the rise, but I might be being optimistic

OP posts:
IrishSelkie · 25/03/2026 19:34

Cherriesandapples1 · 25/03/2026 19:25

I feel like I definitely can't claim a 10/10 it is a decent pension but I've literally just joined the last couple months, so not worth much yet

Show quote history

But you’d potentially get 35 years worth ?

changedmynameagainforthis · 25/03/2026 19:32

I’d work out how much you need saved in cash. 6 months expenses, maybe slightly more as only you in the house (no other adult to help out in event of redundancy/sickness etc)? Then when I got to that number I’d be putting more into S&S ISA

1980isitjustme · 25/03/2026 19:32

I would suggest you consider overpayments on your mortgage, but you need to weigh it up against the returns you’d get in savings so it all depends on your mortgage rate and whether it allows over payments.

Original poster
Cherriesandapples1 · 25/03/2026 19:31

MidnightPatrol · 25/03/2026 19:27

Being mortgage free at 46 is very good for a millennial. You have a lot of equity in your house.

id query why you have such high cash savings vs S&S isa - and I’d be loading any spare money into the latter.

I wanted a 3 month emergency fund before putting any money into the s& ISA mainly because single income household so no-one to fall back on, but also my car is old as anything and if it decides to die on me I can get a cheap runaround without dipping into the s&s ISA. So just a bit of a safety net

OP posts:
MidnightPatrol · 25/03/2026 19:27

Being mortgage free at 46 is very good for a millennial. You have a lot of equity in your house.

id query why you have such high cash savings vs S&S isa - and I’d be loading any spare money into the latter.

Original poster
Cherriesandapples1 · 25/03/2026 19:25

IrishSelkie · 25/03/2026 19:23

genuinely 8/10 maybe 10/10 depending on the defined benefit pension.

I feel like I definitely can't claim a 10/10 it is a decent pension but I've literally just joined the last couple months, so not worth much yet

OP posts:
Original poster
Cherriesandapples1 · 25/03/2026 19:24

Tiillytubby · 25/03/2026 19:20

chuck as much as you can in your pension op, because you get the accumulation the earlier you start, which you can do very little about the later you leave it. Time just won’t be on your side! I speak from experience. 🥰 Well done for clearing your debt; I bet that feels good 💕

Thank you I've been debating whether to open a sipp maybe, I won't get any employer contributions with any additional pension payments with work, just worry about locking more money away which I can't access until 57 (maybe older depending on government moving the goal posts) or whether to get the s&s ISA bigger first which isn't age restricted

OP posts:
IrishSelkie · 25/03/2026 19:23

genuinely 8/10 maybe 10/10 depending on the defined benefit pension.

Oneborneverydecade · 25/03/2026 19:21

8/10

Tiillytubby · 25/03/2026 19:21

forgot to score…7.5? (pension!)

Tiillytubby · 25/03/2026 19:20

chuck as much as you can in your pension op, because you get the accumulation the earlier you start, which you can do very little about the later you leave it. Time just won’t be on your side! I speak from experience. 🥰 Well done for clearing your debt; I bet that feels good 💕