It often makes sense to try and pay off debts as you near retirement. Even when interest rates are low. That’s because the interest you pay on your debt is likely to be higher than you could achieve investing your money.
If you can’t pay off all your debts by the time you retire, consider paying off the debts which are costing you most. Not in terms of the monthly repayments you make, but the interest rate you pay.
Don’t forget, if you haven’t previously done so, you can take a tax-free cash sum from your pension savings. You could use this to get rid of any remaining debt before you retire (though remember taking the tax-free lump sum is likely to reduce your overall pension benefits).
As well as the financial benefits, retiring debt-free is a wonderful feeling.