Mortgage v pension

[HeyHeySaturday]

Our fixed deal has just come to an end and our monthly mortgage payments are significantly lower (wahey!)

Anyway, despite my overwhelming desire to just spend the extra on nonsense I feel we should use the money more sensibly.

I'm thinking we could either overpay the mortgage or up our pension contributions. I know this all depends on our circumstances but I don't want to bore on with loads of details. We have ok-ish pensions, a gigantic mortgage and smallish savings.

Any opinions? Or do they pretty much amount to the same thing? Or should I invest elsewhere? ISA or somesuch?

TIA

Depending on how much you've got spare, why not do a combination of all three? You'll always need some easy-access cash for emergencies so it makes sense to have a healthy ISA or two somewhere. Overpaying a 'gigantic' mortgage is a really sound idea as it brings forward the date when you are debt free and saves you a mint in interest. Increasing pension contributions increases security for the future and the earlier you contribute, the more that tends to be worth on maturation. However, set against a gigantic mortgage, I'd say pension contribs were not quite so important.

the other thing is you don't say if you have other debts if so most likely they will be at a higher interest rate than the mortage, emergency cash - 3-6 month of earnings alway a good idea and if you have DCs but some long term savings again not a bad thing, but agree mortage over payments v good idea interms of amount of money you will save long term - do you have an idea of your likely pensions - might be worth getting some projections to give you a feel for things