Pension or Not ?

Williet

I am 67 with a Pension and a 22,000 mortgage. My Question is should I pay the Mortgage off using my penison and save my self £600 that I pay every month towards what left of my Mortgage ?

Isarulesaretoocomplex

Question is quite vague. Is it state pension and private? What interest is on the mortgage and how long is left.is it fixed. 

Brie

The first question I have is how are you going to pay off the mortgage?  Are you in receipt of your pension?  Or is it something that is still available and you might take a tax free lump from it? 

The second question is what's the interest rate?  If you have a lump of money available can you get more by putting it into a savings account?  

Third question(s) - how is your/your spouse's health and what will you do if you need to go into care?

Sub questions
1 If all you have is your pension coming in can you live well having paid off the mortgage?
2 If the interest rate on the mortgage is lower than what you can get in a savings account where do you think the money is better to be?
3 If you have little cash and are not in good health then consider how much money you will need to shell out before the local authority starts to help pay for your care.  

For myself I had some money so cleared the mortgage as the interest on it was getting silly.  It makes me happy to know that it's not an issue any more which is more valuable than saving some pennies.  

El_Torro

Some people use the tax free lump sum from a pension to pay off a mortgage. Using taxable income to fully pay off a mortgage isn't as advisable but depends on your circumstances really. 

Even if you use the tax free lump sum to pay off the mortgage this leaves you with less money to take as a regular income later.