What to do with Student Loan Contribution Once Repaid

[fiatpower]

I’m finally coming to the point where my student loan will be fully repaid but wondering what to do with the extra cash each month. I have been paying roughly £150-£200 a month and as it comes out of my salary I wouldn’t notice if once it’s been repaid it’s saved somewhere.

I already have a defined benefit pension which I have maxed out my employers contribution and I have a stocks and shares ISA. I see my options as:

1. Increasing my contribution into my defined benefit pension (although won’t get anymore contribution from the company)

2. Increasing contribution into stocks and shares ISA

3. Set up a SIPP

What would you do? Is there an option I’m missing?

[alistair1234]

LISA if you are under 40, 25% bonus. Although if you are 40% tax payer pension might be better.

Benefits of the LISA are you get a lump sum tax free aged 60, whereas pension is 25% tax free and rest taxed.

[InitialDave]

I spent mine on alcohol and car parts.

[Pistonsquirter]

I am due to repay my student loan within a year, currently contributing £319 per month, I also intend to spend it on car parts.

[anonymous-user]

The big question is what age are you planning to retire?

One of the advantages of ISA is that you don't have to wait until "retirement age" to start spending. It can be used to bridge the gap if you stop work earlier. You can also side-step any early retirement factor applied for drawing pension early.