With mortgage rates now much higher than just six months ago, the age old debate - contributing to super versus paying off the mortgage, is back in the spotlight. Of course, the decision between contributing to superannuation or paying off your mortgage is a personal one and depends on several factors, including your current financial situation, risk tolerance, and long-term financial goals.

Here are a few things to consider when making your decision:

Tax Benefits: Superannuation contributions may be tax-deductible, whereas mortgage repayments are not tax-deductible.
Risk: Putting money into superannuation is generally considered a long-term investment, and the value of your investment may fluctuate depending on market conditions. Paying off your mortgage, on the other hand, reduces your debt and can provide stability and peace of mind.
Future Goals: Consider your long-term financial goals, such as retirement. Building up your superannuation balance can help ensure a comfortable retirement, but paying off your mortgage can reduce the financial burden of debt in your later years.
Personal circumstances: Your personal circumstances, such as your age, income, and other debts, should also be taken into account when making your decision.

Ultimately, it's important to consider your own personal circumstances and financial goals when deciding whether to contribute to superannuation or pay off your mortgage. Speak to a financial advisor to see which option works best for you.

Rick Maggi