Up my pension contributions whilst paying off debt?
To cut a long story short I have about £20k debt I'm paying off. £10k car finance and the rest loan and cc's. I'm working on getting this to as low interest rate as possible and hammering down the debt, and then wanting to buy a house in the next few years.
Meanwhile I have a the following work pensions.
GMPF - Defined benefit - On hold as I left job but current statement says approx £2300 per year at 65.
L&G 1 - Defined contributions - On hold as I left the job about £7k in there invested in L&G PMC Multi-asset 3 which is the default I think.
L&G 2 - Defined contributions - Just started this one and about £1k in the same fund as above. Currently my contributions are 4% and my employers is 13.5%. I can increase this on a sliding scale up to 7% for me and 16.5% for my employer.
So I'm considering upping my contributions to the maximum (I get a small pay rise in March and then a larger one hopefully in September) and this won't impact my take home pay too much. Is there any reason I shouldn't do this? I'm really a beginner at all this so I just want to make sure it's not a daft thing to do. I also want to look at my fund options and think about combining the L&G pensions. I'm 41 years old, but better late than never I suppose.
Posted Mar 8, 2025, 12:51 PM UTC