Need advice with small NHS pension return to work

jamesd

Your plan seems to be an expensive mistake.

Overpaying on a mortgage with a voluntary lump sum is almost always a mistake because the saving on the mortgage is normally far less than the loss in pension income.

Best option is probably to stay working in the NHS and paying into the pension until you are forced to stop working by your health.

If you have trouble with the debts the best option is probably to contact one of the free debt advice charities. It is often possible to arrange for interest to be suspended as part of an affordable repayment plan and sometimes firms will reduce the amount owed. One big advantage of this is that it won't hurt your longer term future the way taking money from the pension will. You are likely to end up with no unsecured debts and still having the pension available later.