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Original poster

Best way to manage salaries

6 replies

MoneyMoneyTax · 05/02/2026 06:51

DH is about to receive a significant promotion to jump to 90K. He is 50.
I have just changed jobs and I have a package of £57K ( salary £54K).

I have a LISA.

DH is putting a huge chunk into his pension. He has saved the basic in private pensions all
throughout his working life.

I have recently read about SIPP but I’m unsure if we should go for that instead, or pay off our mortgage by saving and paying a chunk when it comes to renewal in 2 years ( we still have 17years left and it’s not a huge monthly payment. We’re overpaying what we can each month).

I am also going to be looking into rebel finance.

I also have a stocks and shared iSA but don’t put in much tbh

OP posts:
GOODCAT · 05/02/2026 09:09

Adding to his existing pension is really sensible with 40% tax relief. It will outweigh the saving you make by repaying your mortgage earlier or ISAs. That said I did get to a point where psychologically I wanted the mortgage gone so did overpay on that as well as make additional pension contributions. Now paying as much as I can into pension as keen to have financial freedom.

Carrotsandgrapes · 05/02/2026 10:02

Although paying off your mortgage feels good, financially it's often a poor idea. It's better to invest that money or put it into your pension as you'll be making more in interest from the investments than you'd be saving on the mortgage interest.

Also, remember when you add money to a SIPP it gets topped up by 20% by the government (So you pay in 10K, the govt pays in £2.5K). And if you're a higher rate payer, you can claim another 2.5k back through self assessment.

Make sure you're both maximising employer contributions to your pensions as well, otherwise you're missing out on free money.

redfishcat · 05/02/2026 16:48

Look up the financial flow chart. It’s really good

Original poster
MoneyMoneyTax · 05/02/2026 18:44

GOODCAT · 05/02/2026 09:09

Adding to his existing pension is really sensible with 40% tax relief. It will outweigh the saving you make by repaying your mortgage earlier or ISAs. That said I did get to a point where psychologically I wanted the mortgage gone so did overpay on that as well as make additional pension contributions. Now paying as much as I can into pension as keen to have financial freedom.

Good points @GOODCAT. Thank you. I think there’s definitely that aspect of having the mortgage still ‘hanging over us’.

OP posts:
Original poster
MoneyMoneyTax · 05/02/2026 18:50

Carrotsandgrapes · 05/02/2026 10:02

Although paying off your mortgage feels good, financially it's often a poor idea. It's better to invest that money or put it into your pension as you'll be making more in interest from the investments than you'd be saving on the mortgage interest.

Also, remember when you add money to a SIPP it gets topped up by 20% by the government (So you pay in 10K, the govt pays in £2.5K). And if you're a higher rate payer, you can claim another 2.5k back through self assessment.

Make sure you're both maximising employer contributions to your pensions as well, otherwise you're missing out on free money.

@Carrotsandgrapes I’m just starting to look into this properly so thank you for the too about 20% contribution on SIPP.
I’ll certainly maximise the chance for employer max contribution.

OP posts:
Original poster
MoneyMoneyTax · 05/02/2026 18:55

redfishcat · 05/02/2026 16:48

Look up the financial flow chart. It’s really good

I’m just having a look now. The visual helps very much. Going through it with DH now. Thanks!

OP posts:
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