Saving to pay the mortgage

By THIS IS MONEY
Updated:

 

I am 27 and want to save towards retirement. I have a company pension plan but I do not want the AVC plan as I want to be able to have the option of taking the whole fund at retirement if I so wish. I already have two mini Isas and hope to use these to pay off my mortgage in 10 years' time. What do you suggest? J. T., Caernarfon, North Wales.

Mark Dampier, head of research at independent financial advisers Hargreaves Lansdown says: Look to take out a maxi Isa rather than minis next tax year. This way you will be able to put in up to £5,000 rather than £3,000 into an Isa investing in stocks and shares, including unit or investment trusts. You can afford to take a risk as you will be investing over the long term so shares should suit you. Investment Trust savings plans offer a cheap way into the stock market. Foreign & Colonial Investment Trust, which invests in world markets is a good bread and butter fund or you could look at something more race such as Templeton Emerging Markets. For unit trusts Sarasin Equistar and Aberdeen Technology should be a good choice.

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