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Original poster

Should I prioritise pension saving or overpaying my mortgage?

76 replies

lycheesalltheway · 29/08/2026 09:26

I've just turned 39 and feel I really need to start taking control of my life and would like to put myself in a good position financially.

Just to say, I'm not married and no family so will never inherit anything. I am also a freelancer and my income is not particularly high although I'm working on that, I'm not sure how the next few years will pan out. I may end up having to pivot.

I'd like advice on what is best to do in my situation. I have a LISA with £32k in it and I own my flat that I live in and have £145,000 on the mortgage. At my current salary, it will take me 30 years to pay off probably.

Should I prioritise saving into a pension or pay off my mortgage?

I know no one can answer this but what is a good pension to have to be able to live comfortably? I grew up pretty poor but I'm more worried about the fact that I really will have to rely on myself when I'm older and whether I will be ok.

OP posts:
Original poster
lycheesalltheway · 07/09/2026 10:05

Basso0ouma · 04/09/2026 18:29

I actually think you’ve already done something really positive here by having the LISA in place. At 39, that’s a useful account to already have open, you can continue contributing to it until 50 and currently get the 25% government bonus on contributions (up to the annual LISA limit). So I definitely wouldn’t overlook that when thinking about your retirement pot.

On pension vs mortgage, I wouldn’t necessarily see it as an either/or decision. I would first work out what you need to keep accessible, particularly as you’re freelance and thinking about changing direction, and then compare what putting an extra £X into your pension gives you after tax relief versus what the same £X saves you by reducing the mortgage.

You might find that the answer is actually some of both rather than choosing one and ignoring the other.

Also, from what you have written, I don’t think you’re starting from zero at all. You’ve got £32k in a LISA and you own your flat. It sounds more like you’ve reached the point where you want to make sure the decisions you make from here are the right ones for future you.

Thank you! This has made me feel a bit more upbeat. If I think about it too much, I start to feel incredibly anxious

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