Should I pay more?

By THIS IS MONEY
Updated:

 

We are 14 years into a 25-year endowment. I pay up to the limit on my pension. I can afford to save another £150 a month. Am I better off increasing my endowment contributions as it has been running for so long or should I invest elsewhere? GK, Milton Keynes, Bucks.

Patrick Connolly of independent financial advisers Chartwell says: By increasing your existing endowment you are likely to incur a whole new set of start-up charges which may make this an expensive option. It may only make sense to top-up your endowment if you wish to invest in a with-profit fund.

A preferable alternative may be to consider an investment trust or a unit trust savings plan. The charges will be much lower and if necessary you can spread your risk by investing in a broad international fund. You can also make these investments inside an ISA wrapper if you are not currently using your ISA allowance and so get the ISA tax benefits.

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