Sorry, another pension to pay off mortgage

newhit

I'm 62 and can take out my pension at a reduced rate (80%) but I re-mortgaged my house (£150k) on a farm holding for 15 years. If I opt for a CEBT/CBET/CVET/lump sump (?), which would give me about £150k, should I just whack it into paying off the mortgage or take a tax free lump sum (about £12k) and use that to reduce the monthly payments by about £6.7k a year (some quotes give me £30k less total mrtge to pay)? I realise that HMRC would have an interest but I was hoping I'd have enough left to drop the mrtge down far enough to use my business profits to pay it off and keep enough for my retirement. I am self employed in business with my wife, and do not smoke and have no health difficulties (yes, except the memory, knees and vision). Our incomes are high enough to cope with the monthly £1300 payments but if we sell up and retire early we would not like this round our necks for, what could be longer than our "sell by dates".


Any help gratefully appreciated.


PS
Offspring inheritance use not an option.

atush

What about spousal pension?

In any case who is your DB pension with? AS unfunded schemes no longer allow transfers out

xylophone

You have a deferred DB pension from before when you became self employed?


Is it with a private/public service employer?

If public service, which one?

xylophone

And what is your state pension situation?

newhit

Thanx for the replies.


I'm ok for about £130 state pension and missus covered for her max at her retirement (65?). I've checked that I can take the whole lot but I'm worried that HMRC will hit me with 20%, 40% and 45% tax on the various bits.


As I write this I'm thinking that £6.9k per year pay down plus the £12k freebee might be the less costly route.


Once again, thanx.

atush

If you are taxed at 40% or 45% it is absolute FOLLY to draw a pension taxed to pay off a mtg.