Late husband's pension

LHW99

If you don't need income now, and have only a £50k pension provision, then perhaps 3 or 4 is better?

I think if you want it as a lump sum, I believe you need to take it within 2 years.

Marcon

topyam said:

About £350k in easy access accounts
£10k in fixed

I have a £150k mortgage at near 5% that I think I will pay off.

Have an old £50k pension from a previous employer which I have not touched since I left

My husband was young.

Have my full PA.

Think that answers all q. Am mid 40s with 4 kids.

If your husband was young, was he in employment with a substantial death in service payment? If not, what are you and the four children going to live on, as you aren't working? The answers to those questions make a huge difference to the 'savvy' thing to do in terms of his pension.

topyam

£300k of the £350k is the death in service payout.

Cobbler_tone

In your position paying the mortgage off makes sense and will give you security. Hopefully the ability to work as the kids get older. 

If you use the money wisely you should be fine.

Marcon

It must be overwhelming for you to have to cope with the loss of your husband and look after four children as a sole parent. I am sorry you are in such a sad position.

Looking at your previous posts, I wonder if you might consider taking some proper financial advice, based on a full understanding of your financial position and needs both in the immediate, medium and longer term? A DIS payment of £300K is a lot of money, but it's going to have to go a long way - ditto the £100K pension. I can understand the temptation to pay off the mortgage, but it's worth investigating whether that is really the 'best' use of the money, bearing in mind that as you aren't in paid employment, you are unlikely to be able to borrow should the need arise.

GunJack

At least paying off the mortgage will reduce your monthly outgoings by iro £900 a month, a not insignificant saving if you're going to be having to live on benefits for a few years...and barring any major disasters you'll never end up homeless or being shoved in a social house.

sheramber

When my husband dies , after discussion with  a FA I moved my lump sum into flexible drawdown. 

I take a monthly amount but can take any amount I want at any time . I can take less, more or it all at any time. 

As it is a bereavement pension it is non taxable. 

Arthurian

Might the mortgage have a life insurance element, to pay off in case of early death?

GunJack

Arthurian said:

Might the mortgage have a life insurance element, to pay off in case of early death?

Good point, would be worth checking for..

topyam

Ah it hasn't been easy
Cancer is a horrible illness.
All so sudden too.
Trying my best to understand money, and what's best. 
For some reason, I'm dubious about advisors - got bad advice in the past, and end up a mortgage prisoner for many years, before finally escaping.

Think I'd like to pay the mortgage off - paying a LOT in interest. Paying over £1k a month, and near half that is interest.
Currently looking at whether the mortgage company might waive the Early Repayment Charge (roughly £4.5k) given the circumstances. Has anybody heard of this ever happening?

Should be able to return to work at some point, but not in the foreseeable, as the lids are young and childcare would be a lot.