Mortgage deposit or pension contributions...

[Rainbowsandcupcakes]

Hello...

After a couple of years of very part time hours (baby, mat leave etc) I’ve just upped my hours enough to start saving rather than living pay day to pay day.

Anyway, we want to save for a house deposit and have figured out we can probably easily do so within 2ish years if we can save as much as possibly in that time.

Work have also asked if I want to be enrolled into the pension scheme at 4% (I think they match up to 3) which amounts to £60 odd a month.

Would you opt out of the pension scheme until you’ve managed to save for the deposit, then enroll when you’ve stopped saving? Up until this point I’ve not put anything in a pension.

I’ve figured saving up and paying off a house rather than living in rental till the day we die is probably more important at this point?

I’m 24, OH is 29 and he already pays into his pension?

What have you done? What would you do in this situation?

Thanks

def pay into a pension.
get some advice

How much will you be able to save as well as paying your pension contributions?
An extra £60 a month save would “only” net you about £1400 plus pension contributions are matched by employer and tax free so I’d be hesitant to give that up.
Could you and your partner do without that £60 and still save the deposit required?

Will your husband still be paying into his pension? If so, why does he get a pension but you have to forego yours?

It's worth getting some financial advice. But does your partner pay more into his pension than is currently matched? If so - could he reduce that to allow you to pay into yours? If I was you I would want to save for a home too....

I would definitely do pension

There's no hard and fast answer here, as it depends on how much short term pain you're willing to take for long term gain. However, pension contributions that are matched by your employer are a HUGE long term gain - you'd need a really solid reason to forgo that.

Always take pension contributions up to the matched amount.

I’ve figured saving up and paying off a house rather than living in rental till the day we die is probably more important at this point?

Is paying £60 a month into a pension really going to stop you buying a house? (Assuming I've understood correctly.)

I agree with the suggestion that you partner could look at reducing any unmatched contribution to replace the money you're contributing.

The first 10 years of your pension are so
Important. Possibly more important than the 30 years after that. Don’t opt out.

Are you using a LISA for your house deposit? Can’t turn down 25% from the gov

Never advisable to opt out of a work pension. You'll essentially be losing free money & you're likely to massively regret it when you're older!

Pension 100% I am 25 & have a considerable amount in my pension already as I chose 3% as my employer puts in 7% & I felt that was crazy to miss out on! Others in my job chose the 1% where employer pays 3% there is huge difference

I would definitely go for mortgage first and pension after.

You must be saving a lot to save a deposit in two years. How much would the £60 cut into that. If you can manage both but it take you slightly longer to save I would do that. It's only £1440 so a small proportion of a house deposit.

tbh if you can't spare 60£ a month then maybe getting a mortgage is not such a good idea.

You say OH in your OP so i'm guessing your not married. If you were to ever separate, all you'd be entitled to would be half of the house, plus potentially no pension. He'd get half of the house plus his pension, so it isn't a fair deal at all really for you to forego your pension.

If you're married then it probably doesn't matter anyway because pensions would be split down the middle anyway along with the house.

£60 a month is only £720 pa, thats paltry, you could make those savings elsewhere and do both.

Did I not read that 1 in 2 will develop cancer in the future? Current retirement age is 67 (for men). If I have to work full time until I hit 67 I doubt very much I'll give a shit, Besides there's all the other horrors such as dementia or alzheimers, not forgetting your dream home will quite possibly be seized to pay for your care in old age.

It's a tough one. Personally I think enjoy your life, Put something aside if you can.
I dread to think what state I'll be in when I reach 67 and all the money in the world wont turn the clock back.

Work have to pay into a pension even if you don’t.

Save your deposit and then start putting into your pension once you’ve purchased. You can also do ‘one off’ payments into most pension schemes.

Pay into the pension, your contribution is tax free and your employers' is part of your pay package. You're crazy if you don't opt in.

Get some financial advice. I was over paying my mortgage, and after speaking to my financial advisor I now pay this amount into my pension, as you can get tax relief etc on contributions.