What does Tax Free Cash Sum mean?

For those of you who have contracted a mortgage scheme which supposes repayment of the capital at retirement, of course by building up capital through a pension plan, the tax free cash sum is that lump sum you will use from this pension plan in order to pay back your loan. However, there is a threshold of a maximum of 80% of this tax free cash which the lender will accept as a repayment of your loan/mortgage. Using up this tax free cash sum in order to repay the mortgage will leave very little capital for personal purposes (i.e. regular income for your retirement years), but you can make further investments for growth.