I’m 64. Should I use my super to pay off the rest of my mortgage?

August 16, 2026 — 5:01am

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Should I withdraw $80,000 from my super to pay off my mortgage? The loan costs 6.18 per cent. Paying it off would free up about $400 a week, but I’d have less invested, a smaller emergency reserve and lose my redraw facility. Alternatively, I can comfortably keep servicing the loan while leaving my super invested. I’m 64, single and newly retired, with a $90,000 indexed-defined benefit pension and $400,000 in super.

It depends on how your $400,000 in super is invested, but assuming it has a strong growth bias (which would make sense given your risk-free defined benefit pension), then the spreadsheet answer would be to keep the mortgage and let your super continue appreciating.

We don’t live in a spreadsheet, though. In my experience, most people like to be debt-free in retirement. If clearing this mortgage would sit better with you, go for it.

I am 66 and currently work two days a week. I........

© The Sydney Morning Herald