What to do with my pension.

inmypocketnottheirs

cpnick wrote: »

I understand a little of what you are saying. I will clear up what I know.

1. You are correct when you say that a my teachers pension would be around £21,000 lump sum and £600 per month. It coinsides with the maturity of a 40 year endowment maturing soon at £20,000. Hence £40,000.
2. I will be 59 soon so the suggestion will be to take my pension one year early. I will loose around £900 lump sum for this, plus around £300 over the year in twelve monthly payments. So, I will loose around £1200 taking my pension one year early. However, I will gain one years worth of pension e.g. £600 per month = £7,200. The loss on the monthly pension (if I waited until I was 60 year old) is smallish and will take about 20 years before I loose out i.e £7,200 / £300.

I am now thinking the best plan is use the money to cancell my mortgage and become debt free.
Hope this clarifies my situation.
Thanks again.

That is the best solution.

Life is so much easier debt free. Ask the Greeks.

atush

I'd still be inclined to work the extra year and save extra if you can, then retire and pay off your mtg.

cpnick

I am most grateful for all your advice.