We are in our mid forties. Life has been expensive until now as we are both paying child support, etc.
Anyway my husband was made redundant in November and that has focussed the mind to repaying the mortgage/savings/pension as we don't have that long to get rid now. He did walk into another job but it is 30k less salary per annum. We can still afford some savings and all the bills so not worried about base income, however I do earn commission on a monthly basis normally and am considering utilising this to pay towards the mortgage/pension/savings. Currently we have the following:
- Mortgage - 1.95% apr - 4 more years on the fixed rate. Paid 20k off when DH was made redundant (reduced monthly payment to make our bills more affordable) so now down to 178k
- Pension - DH has an employer pension. I have an employer pension. I also have a final salary from a previous job. Mine is on track if I retire at 68. DH we haven't got details for yet
- Savings - Currently have 3 months salary in savings - Interest rate is 0.75% - Don't have any other significant savings currently as just moved house and renovated some of it
- Insurance - Life to cover the mortgage, Life to provide for the kids until the youngest is 23, IPB for me, IPB for DH
We can't commit a specific amount to investments monthly, or to anything currently to be honest as my commission is not guaranteed and not regular. However I was thinking of doing a 4 way split of my net commission. 1 x lump off mortgage and reduce term now, 1 x lump into my pension to top it up/potentially retire at the same time my husband does (he is 4 years older), 1 x savings account until we can start investing, 1 x into spends for things we may want but might not normally get/do.
Does anyone have any thoughts in addition to mine currently?