To withdraw 25% of pension to pay part of the mortgage?

[Greentreeflowering]

Total funds 300k, 59 years. Will you withdraw 25% of your pension to reduce interest? What are the implications?

Just to make some aware. From 6th April 2028. The age to draw the 25% pension is changing from 55 to 57.
There are some exceptions such as ill health.

@Galliano the question wasn't about recycling, it was about the MPAA.

The OP will only get tax relief up to her earnings anyway, so unless she ears £60k, she can't contribute that anyway (well she can but she won't get tax relief).

I understand that thanks but was pointing out there was a further possible constraint on the OP plans. I'm guessing the OP does earn £60k+ as it would be a pretty coincidental to pick to contribute exactly £60k if not for the tax benefit.

@Galliano who knows? Judging by this thread a lot of misinformation is about, especially regarding the MOAA 🤷‍♀️ .

if you take 25% tax-free lump sum, 3 times that amount will be moved into a drawdown account. As you’re still working and haven’t taken any money from the drawdown account that would be taxable, you can still save up to £60k a year into your pension tax free. The overall maximum 25% taxable free allowance is about £251,000 means if your tax free amount is less than £251,000 you could take more in the future. However, that tax free amount would be from the money you save into your pension after taking out the tax-free lump sum. If you took the full 25% tax free, the other 75% will be moved into a drawdown account. And your pension account would be zero until your contributions from your wages/employer or other payments were received. And a pension runs on cumulatively meaning the more you have the more you earn. All subject to the performance of the funds of course. If it’s a defined contribution pension. Seek advice from an IFA to help you with the sums, if needed. When you spend the money, you can’t claw it back.