Review my financial please

[TwinklingLightsEverywhere]

This probably isn't right on topic for this board but seems the most appropriate place to post.

I am hoping for opinions/advice on my current state, particularly with regards to holdings as cash v shares v mortgage.

Ultimate wish is early retirement or financial independence. It's unlikely we will ever feel comfortable since have 2 SN dc and don't really have a feel for whether they'll become independent as adults.

Couple late 40s in very stable jobs, no desire for promotion. 2 teen dc as above.

Income (net monthly)
Me £2500 (part time 0.7)
Him £3500
My side hustle £500-£1k
DLA etc is saved for dc

[another hands off income of currently £1k per month gross which can disappear at any time, or go up exponentially, best ignored]

House
Value ~£400k-£450k
Mortgage £138k interest only @ base rate +0.25% lifetime tracker. It is an offset account.

Assets
Cash isas £68k
Shares isa £178k
Premium bonds £33k
Cash savings £30k offset against mortgage

Current Pensions
My DB scheme currently 15k per year from 65
His DB scheme currently 22k per year from 65
(these both go up about £1k for every extra year we work)

Old pensions
My DB £1k per year from 55
His DB £6k a year from 60
My DC pot 45k

We live well within our means but loosened the purse strings somewhat when my side hustle was bringing in a lot more and now trying to rein it back in a little. Save between £1k and £3k a month.

So happy to hear thoughts, advice, opinions. In particular does cash to investment ratio feel about right?
Mathematically I know I'd be better to offset the PB against the mortgage but we seem to be very lucky with PB, tell me how stupid this thinking is please!

Pensions currently feel a bit crap but we expect to work for 5-10 years longer so should be decent by then. DH would rather go PT than retire fully. No inheritance expected on either side.

I think I need to do some forward planning, calculating savings rates and pensions at possible retirement ages but it feels like there are too many unknowns.

I also probably need to do a budget, we have frugal mindset so never bother but can't do a long term plan without budgetting for larger infrequent costs eg cars.

So again apologies this isn't quite the right board but Money Matters didn't seem right either.

You look to be in a very good position to me. Plenty of cash savings (maybe too much), a healthy stocks ISA, being in the position to pay off your mortgage whenever you want, having 2 x DB pensions which are far from 'crappy'.

If it was me I'd be utilising ISA allowance each year in your stocks and shares ISA. You don't mention what you are invested in but a global index tracker would be my personal choice.

Consider paying more into your DC pension especially if you are a 40% tax payer.

Your pensions look ok and if you look at Which guidance will give you an average lifestyle as a couple.

i would start paying off the mortgage.

Max your Isas

perhaps set up a pension AVC.

Can’t really offer advice, but what is your side hustle ?

Why don't you use your your cash ISA to offset your mortgage even further. I would imagine that the interest you save will far outweigh the tax-free interest earned. The money is still available should you need to use it.

Your savings of £1-3k per month can also offset and if it were me I'd be looking to use some of it to reduce the mortgage by at least £1k per month.

Your £33k in premium bonds would probably be more efficient if also used to offset but I do understand the desire for some savings to be a bit more fun.

I think you're. Focusing on the wrong things personally. Is clear the mortgage and then massively increase pension contributions by the amount the mortgage was, so you get close or exceed a £1m pot.
As it stands you have very small pensions and still a large mortgage. Priorities are wrong in my view - how do you intend to fund retirement? The isas wont.

Get the tax relief through contributions for additional pension growth, max your employer contributions, benefit from compound growth pre-tax. If you can save well you're insane to not be doing this. The max you can put in a pension per year is also capped (60k/yr).

Are your DB pensions index linked - ie with one of the public service schemes, TP, LGPS, CS (various versions), etc? If they are then excellent, that takes some worry/guess-work out of the equation.

By putting money that is currently in savings into the mortgage offset account you will maintain liquidity, and will in most instances beat or equal current savings interest - esp as your OH looks like him is probably a higher rate tax payer, so will pay tax on savings interest outside an ISA over £500 pa. However, this balance might shift if he pays more into pension so he becomes a standard rate taxpayer. But acutally, I'd say it's pretty marginal, so your emotional response to any suggestions (not advice) will come into play.

I'd suggest it looks pretty healthy, but worth considering that recent forecasts and movements in the economy suggest that cash interest rates have already peaked - so your offsett will look more attractive until the base rate also falls.

Finally (phew!) - work out your 'number', that is what amount you want to retire on. Many people mistakely assume that it is much higher than they need because they don't look at what they actually spend and how that will change - less commuting but more travel for example. No NI payments (currently) or pension contributions. Since you have DB pensions you have a guaranteed income, so no need to have a rainy day fund for loss of job - but you might want one for big capital spends. The best place to look for advice on this would be the MSE Pensions forum, where you will, no doubt, be advised to closely track your ACTUAL spending.

Best of Luck!

You seem to have forgotten that you will also both be likely entitled to a full state pension at 67/8. This will be another £10,600 each.

Even though your mortgage rate sounds great at BR + 0.25 (which was what I had before I paid it off when rates went up) you are still paying 5.5 percent interest. I'd use some of your monthly £1-3k to overpay on your mortgage if there is no penalty. I'd be looking to pay it off the feeling of relief is fantastic.

Your DH is a 40 percent taxpayer so I'd expect him to be paying a lot extra into his pension. That's what my DH does anything above the 40 percent threshold goes into his stakeholder pension which the government tops up too. At 55 but STB 57 he could draw 25 percent of that down tax free if he wanted to. It would give you both options for early retirement if you wished. You never know what is ahead. My DH got an unexpected brain tumour which he had removed and he's fine now but made us both stop and think. I retired early from teaching at 56 and he will either retire early from PS job at 60 or at least go part time at that point. The money squirreled away in his stakeholder will see him through until 67 because he can claim a chunk of his CS pension at 60 but the rest not until 67. So between 60 and 67 he'll have DB pension plus roughly 1/7 of his stakeholder pension each year. If your DH opened a stakeholder to put anything above 40 percent threshold he'd pay less tax and could do similar.

I'm picky about investments. Whilst the war goes on with Ukraine I invest in BAE systems because their shares are good in times of conflict. I also have 6 or 7 other shares I invest in which are doing ok. I keep an eye on them.