Using pension fund to help daughter

angelofabundance

My daughter lives in a small 1 bedroomed maisonette in Streatham and is expecting her first baby.
Her and her husband are looking to move but cannot afford London prices but want to stay in the area for work.

I seem to remember that money can be released from pensions to buy property, could I use some of my pension money to help them buy a larger property, they could pay rent on my part and then I can recoup the capital when I retire either by them buying back my part or by selling the property.

Rebecca is a teacher but it seems very difficult to qualify for shared ownership schemes especially as they already have their own property unless anybody else has any great ideas that can help us.

I know this site has so many people watching and there is a mine of information amongst you all so anything that you think might be useful will be much appreciated.

Cook_County

The earliest age that almost anyone can release funds from a UK pension plan is age 50.

Whether this is wise is a different question.

Are either of the daughter's parents age 50 or above, and is the pension plan within the UK?

EdInvestor

I seem to remember that money can be released from pensions to buy property..

No, that's not possible, but as mentioned, those over 50 can "take benefits" from a personal pension and get 25% of it in tax free cash to do with what they like.As of next April the rest of it can be left invested until you need to take it when you retire - there will be no need to take an annuity or taxable income now.

It may be possible to take a lump sum from a company pension also, but this is almost always a very bad idea as it seriously reduces your eventual retirement income.

angelofabundance

Thankyou both for your reply, not 50 yet so that probably answers everything!