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| If you have a mortgage where the interest payment exceeds the return on 3rd pillar then yes it makes sense. Do take into account though the income tax relief you get on that interest payment and the cashing-in tax on the 3rd pillar. You may find at the moment if you have a good mortgage you are actually getting a better return by staying in the 3rd pillar, especially taking these other items into account. | |
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cheers. i never previously paid into 3rd pillar because i didn't want to lock-up cash before retirement (i don't believe many investments will return well by the time i retire).
however, i will do so if there are good tax advantages
and i have a way to pull out the money (i.e. to set off against the mortgage).
as you say, at the moment, it would make sense to keep it in the 3rd pillar, and take the tax advantage on the 3rd pillar and the mortgage, my only concern would be if the laws change which would then result in the cash being locked up and no longer being allowed to be used against a house purchase.