Check out our pick of the financial news from across the web and find out what we think!
The Guardian: It’s mortgage payback time now savings rates are grim
The Guardian report that an increasing number of young homeowners are choosing to overpay on their mortgages, following a decade of low interest rates for savers.
Check out the article here. https://www.theguardian.com/money/2019/jan/13/mortgage-home-loan-overpay-which
Lower my Charges’ take: With interest rates remaining low, overpaying your mortgage makes sense and may be the right option for you. But remember to prioritise existing debts, focusing on those with the highest interest rates first.
The Independent: British people need at least £260 000 to retire without money worries, say experts
With increasing life expectancy and low interest rates, the amount we need to save for later life is increasing. The Independent looks at how much money we’re likely to need, and suggests that we need to do more than simply pay into our workplace pension schemes. With the prediction that a third of millennials will never own property, many will need to save approximately £445 000 to fund rent costs in their retirement.
Lower my Charges’ take: You’re going to need at least £260,000 as a pension pot for retirement according to research and probably more if you don’t own your own home. Are you on track? Don’t rely on a workplace if you are only making the minimum contribution. It’s unlikely to get you there.