Increase in pensions being used to pay off property

With that being said, there were those who have taken a step back from this and have realised the potential of their pensions as a mechanism to pay off their mortgage debt.

It is widely anticipated that approximately half a million individuals, some 631,000 in the UK alone plan to make use of all or even part of their pension to repay the balance on their mortgage.

Research undertaken from the firm Partnership illustrates that out of the majority of 40 to 70 year olds with mortgages, 71% will continue their financial commitment and meet their monthly repayments, 25% plan to use lump sum contributions and as much as 9% or 631,000 will use their retirement savings to settle their mortgage account.

It also revealed 8%, or 561,000 people, indicated they will rely on their inheritance as means of paying the outstanding loan amount on their properties whereas  7%, or 491,000 people, openly admitted they are unsure how they will meet their repayment obligations.

Although these statistics may be a cause for concern in which most intend to use all or part of their savings to pay off their mortgage, the figure has fallen from over a million in 2014.

What this does suggest is that many individuals are now taking a more general and open minded view in terms of how they put their pension to good use rather than simply using it as a one off expense. This change in direction has now led to many centring their efforts towards paying their mortgage before they retire.

Recent work undertaken by lenders to raise awareness with customers concerning interest only mortgages and their duty to have a robust repayment vehicle in place seems to have had a encouraging effect as more people have now moved onto the option of capital repayment. However, while the prospect of being  "debt free" in retirement is an ideal situation for many, depending when they switched their repayment method, they may still find themselves with debt come their retirement age.

Using their pensions may seem like a feasible option, but it is important to note that there are other alternatives available. Various examples include working longer, downsizing or looking into the possibility of taking out a lifetime mortgage.

In an ideal world, your pension savings should be put aside to fund your retirement and as the current state pension only gives you a very minimal "safety net", making this crucial decision could have severe repercussions in later life. Therefore, it is important to think very carefully before you commit to such an important decisions and weigh up all your options before you do so.