Pip, It’s a nightmare decision, I am just going through exactly the same dilemma. I have finally decided to pay off my mortgage as the tracker mortgage will only protect us as long as interest rates stay low. Plus, of course whilst interest rates are low savings will not earn much. It is always better to pay off bills as you then need less to live on anyway. Try looking at Money Supermarket advice on this, Martin over there will always say take the largest sum you can as your money will be worth less in the future and always pay off debts first - including the mortgage. Any money you have counts against your benefits either lump sum or regular income. If you are like me I will pay off my mortgage with the lump sum but still end up paying tax on my pension. My occupational pension will only be made up until I am 60 as that is the normal retirement age in my pension scheme but I can’t collect my state pension until I am 66!! It’s a nightmare and I really feel for you, early retirement through ill health should be to avoid stress. PM me if you want exchange notes lol. Be well Pat x
Hi again, I think you need to factor in how you would manage to pay a mortgage with 18 years to go if interest rates were to rise, what if in 9 years time they are double what they are today, could you afford that. Interest rates are historically low and won’t stay like this for ever. Also factor in inflation, i don’t know your attitude to risk, you could try investing a lump sum to see if you get a better return that would beat inflation over a longer period of time but that may be risky for you especially with a mortgage with a considerable time left to run. Also, psychologically would you feel better being debt free and owning the house now which could be achieved with the lump sum than by getting a bigger pension, even if long term you were actually worse off. I’m guessing you don’t have critical illness insurance or something linked to your mortgage that would pay it off if you became too ill to work? Cheryl:-)
Cheryl yes I did have critical illness pay out but that is sitting in an account as it wasn’t enough to pay off the mortgage, so I was waiting to see what my pension would be before I decided what to do for the best. With that and my lump sum I could pay it and my loans off.
Yes with all the other considerations I forgot about rates going up and monthly outlay consequences. To add another element to the pot,hubby came back yesterday with his redundancy and early retirement figures with a view to him being out by xmas!!!
We worked out what it would mean taking pensions as standard or converting various amounts.He is still all for taking lump sums,but if I then snuff it before him he will have to live off his own pension which will be very low,but with some as savings,if he doesn’t keep dipping in.
I seem at last through being able to voice on here towards converting half of my allowance,paying off all the mortgage and loans,or maybe thats me just trying to compromise with hubby…I shall ponder on that during the day.
Pat, I haven’t got a clue when my pension will pay up til, I just assumed it was til I snuff it. I don’t even know where to look to find it.It says nothing on this last letter. Thats another bit of hunting to do
I was asking a few weeks ago how I was going to fill my time and someone said oh dont worry you will soon be posting that you dont know how you ever had time to work…I’m there already!
Pat if you dont mind I will probably pm you,but I have limited access to the computer as this forum is still my guilty secret so today is my last chance for a week.Ive got to hunt re this 60 lark first.
Thank you everyone for your imput it is a huge help to me.
Pip
When I said ‘made up to’, I didn’t mean they will stop paying my pension! I meant they will only enhance my pension as if I had left at 60 and not 65. I am 58 now so it will only be a small amount for them to enhance. You enhancement is much more generous 
Sorry if that panicked you! Pat x