Pension payment

Alison · Feb 28, 2013

was8v":3k0hmcoo said:
unkleGsif":3k0hmcoo said:

Or... the annual interest earned on £5.5grand in a high interest ISA will be more than £169/year

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Best cash ISA rate ATM is 2.8% AER = £154 per year

Isaac_AG":3k0hmcoo said:

The thing is we have a car that every MOT costs us at least £600 is rusting and has developed a few probs as well and is due for another MOT this summer and there were issues with the braking last MOT which will need doing this time, so a lump sum for a car would be soo tempting, as living in a small village 7 miles from town and four childre our car is vital, but as mentioned it could go into his work pension, Oh the dilemma

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If you need the money badly now....then fair enough..... however it is pension money that he saved at the time for retirement, I would want to tuck it away if I could.

Have you paid off your mortgage? Might be better putting it into the mortgage, most let you pay 10% or so extra off the capital per year. This would reduce your monthly mortgage spend meaning you would have money to increase existing pension / car / bike payments.

We rent, almost bought once then I chickened out just in case Dom lost his Job, he lost it about 6 months later. So I have never had the courage to get a mortgage since.

We'll have to think Long and hard about it.

Alison

MikeD · Feb 28, 2013

was8v":3lkzm1vk said:
Best cash ISA rate ATM is 2.8% AER = £154 per year

Who's doing 2.8%? Best I can see (admittedly with only 10 seconds of looking

) is 2.3% (£127 per year).

sylus · Feb 28, 2013

you've mentioned the car so i suspect thats where it is going to end up with a lump payout taken

however if you have debt, pay off the higher rate ones as that will put more money back in your pocket per month than any investment

ringo · Feb 28, 2013

I'd take the lump sum now on the basis you seem to have a genuine need... one that is probably going to be more worthwhile to you now than the extra fourteen or so quid you'll make in retirement.

No guarantee you'll see that £14 either if the markets implode and we all end up back living in caves...

was8v · Feb 28, 2013

MikeD":uyg1optu said:
was8v":uyg1optu said:

Best cash ISA rate ATM is 2.8% AER = £154 per year

Click to expand...

Who's doing 2.8%? Best I can see (admittedly with only 10 seconds of looking ) is 2.3% (£127 per year).

Coventry BS, 60 day notice.

http://www.moneysavingexpert.com/saving ... a#coventry

MikeD · Mar 1, 2013

Cool, ta

gerryattrick · Mar 3, 2013

Don't forget the £169 a year pension will be taxed, whereas ISA interest won't.

IMO this makes the lump sum a more attractive option. In addition you've always still got that lump sum base amount to fall back on in an emergency

Pension payment

Alison

MikeD

Senior Retro Guru

sylus

Old School Grand Master

ringo

was8v

Senior Retro Guru

MikeD

Senior Retro Guru

gerryattrick

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