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Help needed!! - house vs pension

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Hello everyone, 

Been reading the forums and seeing as there are so many experts and knowledgeable people on here thought I would seek some advice on behalf of my mother in law. 

Background, she has no private pension and no assets to her name, and is 62 and self employed and wants to retire at 67. She has just recently bought a house (on a mortgage)  as she wants to own one as an asset mortgage free as her retirement property. The house i believe is worth about 200k and is trying to over pay the mortgage to own it outright then sell up and buy in Spain when she retires and live on state pension. 

Personally I believe she would be much better off paying a lot of money into a pension pot to benefit from the annual income in retirement getting uplift from the tax relief and interest on the pension pot so she has a better income in retirement. Then still retire to Spain but rent somewhere cheap. I am also concerned that she may be looking to sell the property around the time of the next crash in the property cycle as she hasn't got the time to think of the long term benefits of property investment due to imminent retirement. 

Anyone savvy about this stuff please help.

What is the best course of action for her not to be stuck in pension poverty trying to survive on the very low state pension. I believe she is paying circa £2k a month into the mortgage so this is what she could pay roughly into a pension pot.


Thanks for reading this long post, if you have made it this far, and for anyone who can give some advice :)


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