Pay off my mortgage with my tax free pension lump sum

SteveWillenhall

Hello everyone I wonder if you could offer some advice. 

My retirement data to get state pension is 5 years away. I am 62yo.

I have a personal pension worth £200000 and a mortgage of around £50000. 

My mortgage deal ends in July and I am contemplating taking my 25% tax free lump sum to pay off the mortgage. I know this crystalizes the pension but I would simply let the remainder run until I retire. 

I have another smaller workplace pension of around £15000 that I don’t intend to touch. 

My pension has made 17% over 5 years due to pandemic liz truss and other factors which is 3.4% per year. The new mortgage rate I expect to be 4% or greater so is it the no brainier that it sounds?
also if I remain working could I keep adding to the other untouched pension until I retire?
sorry for the long query but thought the detail is key

stuhse

This might attract more responses in the pension section.

beanielou

stuhse said:

This might attract more responses in the pension section.

Agree with this.

Cornish_mum

Hi
I would recommend this thread moving over to the pensions board, as there are some very knowledgeable people on that board.

I would suggest that you calculated your income needs in retirement, and confirmed your state pension entitlement. Then think about cash flow and tax carefully, to see how taking the TFLS will impact your retirement income 

Best wishes CM