Retirement Advice

alancwearing

Hi
I am looking for some general advice on savings and mortgages.


I work for the NHS as a nursing assistant, I have a 15k mortgage, and £65000 savings and a £400/ month private pension
I am looking to retire when I am 60 in September 2018.(By then will have my mortgage down to £10k.)
My dilemma is do I pay off the mortgage or save. I receive my state pension when I am 66 so need cash to live off. My savings used to pay more than my mortgage, i.e. when Santander paid 3%.
However since the reduction in interest to 1.5% this is no longer the case.
My mortgage rate is 2.93% (6 years to go, I can overpay). 60 k is in Santander 123 accounts. The £400/ month is my private pension (30k of the 60k was a pension lump sum)
I have an NHS pension but have just 8 years service


Thanks for any suggestions

enjoyyourshoes

Has the mortgage any early repayment charges against it?

If not , I would pay the whole lot off.

If there is, find out how much you are allowed to overpay each year, and pay this off.

There may be a point in time that even with an ERC, it would be financially better to pay off the whole mortgage.

Look into the NHS pension (ERBO-early retirement buy out) to see cost of bringing forward the retirement date (max 3 years)

Mnd

I know this does not directly answer your question, but if you finish at 60 that gives you 6 years that is 72 months to live off 400 pension plus 800 per month from your savings. Will that be enough? You havnt said if you have a partner so I admit I don't know your circumstances, but you should consider this aspect.
On another matter I retired at 63 back in July and love it, so if you can afford it, go for it, but don't sail too close to the wind financially. Good luck