2029 Pension Changes Confirmed
Find out how the new NI rules will affect your retirement pot
Pension vs MortgageWhich Builds More Wealth?
Should you pay more into your pension or pay off your mortgage faster? This calculator shows you which strategy could leave you wealthier at retirement. We'll factor in your tax relief, employer contributions, mortgage interest, and how your home's value might grow.
Decision Context
Use this calculator if:
- You want to compare mortgage overpayments with pension contributions
- You need to understand long-term return differences including tax relief
- You want a data-backed projection rather than general guidance
This calculator assumes:
- •Standard UK tax rules (2024/25 tax year)
- •No employer NI restrictions unless configured
- •Stable investment growth assumptions (configurable)
Planning as a household? Enable this to add your spouse's pension and budget allocation.
Pension Settings
Configure your pension contributions and expected returns
Mortgage Details
Your current mortgage information
Budget & Allocation
How you want to split your available budget
Orange segments represent tax relief: 20% is automatically added to your pension pot, and an additional 20% comes back to you as a tax rebate.
Strategy Optimization
Explore how different approaches might affect your outcomes
Projection Over Time
Track mortgage balance, pension value, and net worth (Today's £)
- Mortgage Balance
- Pension (Expected)
- Net Worth (Expected) (Today's £)
Shaded areas represent the range of possible outcomes based on conservative and optimistic growth rate assumptions. The solid lines show the expected scenario.
Net Worth = Pension Value + Property Value - Mortgage Balance, adjusted to today's pounds. This shows the complete picture of total financial position over time.
Financial Position at Retirement
Accounting schedule showing your projected financial position (Today's £)
Detailed Breakdown
Save to Your Financial Plan
Your saved details will pre-fill other calculators automatically so you do not have to re-key information and can access your saved calculations at any time.
Assumptions & Notes
What's Next?
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Understand the tax benefits driving pension contributions
Read GuideAbout the author
Melanie Reed is a fintech and product specialist with 13+ years' experience building mortgage, investment, savings and retirement tools at companies including Aviva, Lendinvest, Money Advice Trust and Luno. She develops calculators and content that simplify complex UK financial decisions, covering pensions, mortgages, tax-efficiency and long-term savings.
Frequently Asked Questions
Common questions about pension vs mortgage decisions
Try It Now
Use the calculator above to compare pension contributions with mortgage overpayments based on your personal situation
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