Personnal Pension

jmad_2

I wonder if someone can help me with a very ignorant question.

I say ignorant because to be quite honest, I have never really understood pensions even though I have had one with Scottish Widows for some time. I stopped paying into it a while ago, but I have about £20,000 in the pot. Am I able to use it to pay off some of my mortgage or do I have to wait til I'm 65?

Thanks

seven-day-weekend

You can probably draw some of it as a lump sum at 50 or 55, and have the rest as an annuity (monthly pension).

You can't draw any of it out before that age.

dunstonh

Your pension is also "probably" growing at a long term average return higher than the interest you are paying on your mortgage. So using it to clear your mortgage and reduce your retirement income probably isnt the best move anyway.