retiring at 50 years old, taking lump sum of £100,000, have mortage of £156,000 against a property valued at £250,000,

monthly pension will currently pay all financial commitments including mortgage although it will go up significantly in Dec 2009,currently on tracker 0.14% above bank of england base rate eg interest only £82 month on £156,000, will definitely go up hundresds when i re mortgage in Dec 2009.

dont want to put lump sum into mortgage ,want to invest it , have say 6 months wages put aside until i decide on a new job , also want monthly income from a substantial part of the lump sum yet easy access to some of it for a rainy day , have no other savings or outstanding debt , any advice welcome, cheers

In May you told us that the lump sum was 90k. Any other fantasies you want to share with us?

I have all the facts now and the recent posting is absolutely accurate , ive spoken to one financial advisor who is talking about annuities which Im not keen on now that Ive researched them, apologies if the two sums are different, i was surprised when i received the details officially by letter, thanks

Are you sure that the pension you'll receive after taking the lump sum is enuf?? If £100k is the tax free sum then assuming the 25% rule I reckon you would only get ~ £11k pa @ 50. Can't see that paying a £156k mortgage and housing costs!!!

i am realistic enough to know i will have to work again especially as im only 50 years old howvere mygut feeling is to stick the bulk of the lump sum into reducing my mortgage down to around £76,000 and work away at it over the next 20 years,keeping a sum of money as rainy day savings so i dont need to panic and take a job that doesnt work out , most people tell me to get that morgtage down ?

I'm also 'only' 50 and I've been retired for 9 years! Your gut feeling is correct, reduce your debt as much as you can, that way your outgoings are also reduced.

sounds good to me thanks