Pension/mortgage saving advice at 39...

[PensionHelpPlease]

I'm hoping someone can offer me some advice as I'm not sure what savings options are best. I'm 39 years old, and I have about 10k in my current workplace pension and 10k in an old AVIVA pension. My salary is about to increase to 55k. Currently I pay 5% and employer 3%. In Scotland so tax rates are a bit different from England's.

I'm wondering if I should

• combine my AVIVA and current pension (and increase my contribution)?
• move the AVIVA one to something like PensionBee, and save extra in there? I'm a bit confused about how the tax relief works?
• open a LISA as it's my last year to open one and benefit from the government bonus
• overpay mortgage instead (around £160k at 5 percent)

Thanks for any advice!

Start listening to the Meaningful Money Podcast, or read the Meaningful Money Handbook by Pete Matthew. This will help you decide what to do with your pensions and savings in general

A couple thoughts:

• you could combine pensions to reduce fees
• open a SIPP for additional payments but make sure it has low fees
• open the LISA (Stocks and Shares one ideally) and pop a pound in if you're unsure. This wau you've got one and can then pay in at later date up to 50yrs old.
• could overpay mortgage, pay into S&S ISA, or split and do both
• up your pension contributions!

What is your salary now OP, before the increase? Because if you are currently under £50K then the pay rise will take you into a new tax bracket and you will lose most of it as tax. You should therefore prioritise pension savings. Put at least £5.5K pa into your pension and it will keep you in the lower tax bracket. Then go from there with your overall savings plan.

Thank you, I will check the book/podcast out, and thanks for your advice!

Thanks for the reply, my salary is currently 51k, but in Scotland we pay 42% tax from 43 to 75k so I've been in the higher band for a while

Pay more into your pension rather than overpay the mortgage.