Cash pension to pay off mortgage

P

Pieface

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I have a defined contribution pension with a previous employer and they have written to me to say that I can now cash it. I wish to find out if it makes financial sense for me to use that money to pay off my mortgage. And then put my monthly mortgage payments into an AVC. My annual mortgage repayments would be less that my current age-related earnings percentage limits for pension contributions.

Thanks.
 
Generally speaking, this is not a good idea as you lose the benefits of tax-free growth in your pension fund.

Who would have to post some more details about your finances to get a more specific answer
 
For such a critical decision you really need to provide the following information.

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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No meaningful advice can be provided without some financial information.

You are asking a question like "How long will it take to to get to X?" without saying where you are, where X is and what means of transport is available to you
 
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