Pension or Pay Off Mortgage

from a previous employer I have a pension waiting when I am 60 - it will give an income of £10k per year plus a lump sum. its indexed linked.

I currently £150 per month into an NHS PENSION - However I hope not to stay in NHS - i was wondering if to withdraw from this pension and overpay an extra £150 on my mortgage.

mortgage is £62k - with 12 years to run.

I have a health problem which stopped my dad working at 53, and my sister at 48 - I am currently 44


  • [Deleted User][Deleted User] Forumite
    0 Posts
    Part of the Furniture Combo Breaker Mortgage-free Glee!
    Hi kingrollo,

    Is that £10k figure the income you'll get if you stop paying into it, or the income you'll get if you keep paying into it?
  • the 10k figure is from a previous employer - I will get this + inflation - no matter what, when I am 60.

    My worry is due to my health - I may have to take a less demanding job - at a lesser salary - so i want to put as much as I can into my mortgage, whilst I earn a reasonable wage - but not sure about pulling out of the NHS pension. - to pay off an extra £150 per month.
  • Kaz2904Kaz2904 Forumite
    5.8K Posts
    Mortgage-free Glee!
    You need to go and see a pension adviser within your trust who will be able to tell you how much you could expect to earn monthly from this pension.
    I have always been told that the nhs pension is a very good one to have and I would hang onto mine if I left the nhs but I will go and see an adviser before I make any decisions about it.
    Debt: 16/04/2007:TOTAL DEBT [strike]£92727.75[/strike] £49395.47:eek: :eek: :eek: £43332.28 repaid 100.77% of £43000 target.
    MFiT T2: Debt [STRIKE]£52856.59[/STRIKE] £6316.14 £46540.45 repaid 101.17% of £46000 target.
    2013 Target: completely clear my [STRIKE]£6316.14[/STRIKE] £0 mortgage debt. £6316.14 100% repaid.
  • I suspect NHS might be a final salary scheme? If so then it's probably better to stay in it as long as possible to get the maximum number of years benefit (especially if the NHS makes any contributions on your behalf which you would miss out on if you paid the money to your mortgage instead) but only an IFA and you armed with the details of your scheme would be able to figure it out for sure.
    MFi3 member 105 - MFW date Oct 2023 - 12 years 9 months more
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