Should I take a lump sum from my super to pay off my mortgage?

Q.

I am 60. I retired two years ago and have been living off cash savings. I have $800,000 in superannuation, own my own house and have an investment property with a $125,000 outstanding mortgage. Monthly rent received is less than monthly outgoings. As I am not a taxpayer, I do not benefit from negative gearing. Would it be possible or make sense for me to take a lump sum from my super to pay off the mortgage?

I am loathe to eat into lump sums, particularly if your shortfall is small. Obviously there are many factors to consider but first I wonder if it is likely that increased rents in the next two or three years may bring the property into profit. If so, I recommend that you leave things as they stand for the present. Another option is to pay sufficient off the mortgage so that the loan becomes neutral geared. That means it makes neither a profit nor a loss.