Got a lump sum but no pension - do I put it into the house, pension or both?

Jains71

I'm 51 and have no pension (long story). Have still got £129k on my mortgage, and 16 years left. I'm about to receive approx £90k - where do I put it to best secure my future?

- If mortgage/pension, what percentage split between both?
- Mortgage is currently £777pcm - do I get my monthly payments down (and keep mortgage length the same) or keep mortgage payments pcm a similar amount, but significantly reduce the length of the mortgage?

Linton

On the information given it is impossible to say.  What is best is dependent on your overall situation.  Unless you lead a very frugal existance £90K is not enough on its own to secure your future.  State Pension is about £9650/year.  £90K in a pension could pehaps generate £3.5K/year inflation linked.  Is £13K/year sufficient to keep you at your desired standard of living for the final quarter of your life?

If you want to discuss these wider issues I suggest you look at the Pensions board.

dunstonh

- Mortgage is currently £777pcm - do I get my monthly payments down (and keep mortgage length the same)

That is just dodging the problem and putting it off until tomorrow to give you more money today.  Your older self will not thank you for that.

or keep mortgage payments pcm a similar amount, but significantly reduce the length of the mortgage?

That doesn't help you with retirement income provision.  Is the mortgage affordable?

You have given very little information.   i.e. we don't know what your retirement provision is.  You say no pension but there is no mention of your savings or other provision.  No mention of whether you are employed or self employed or not employed.

However, if we assume you have no provision at all in retirement, then you are on track for around £9500 (possibly less) state pension in retirement.  Could you live on that? (most cannot).