pension over mortgage

kevster111

ive been talking to someone who has cashed in his pension and used it to take a lump sum of his mortgage, and its got me thinking, with the current economical climate, and all the things being said about pensions not being worth there while in a few years, would it be a good move for me to do this, with a view to the mortgage being paid of earlier, my other thought is putting the money into investment? any thoughts anyone?

MikeJones_2

Just to clarify to other readers, you can take a cash lump sum from a pension - but you can't cash a pension in. There's a simple, albeit subtle difference.

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

kevster111

ok, i stand corrected!!!! so, when you say i can take a cash lump sum from a pension, that then closes the pension, i just, obviously dont get the full return on it ? or it effectivly goes back to zero pounds in it but carries on?

dunstonh

and all the things being said about pensions not being worth there while in a few years,

Who is saying that?

so, when you say i can take a cash lump sum from a pension, that then closes the pension

No. You can only take 25% of the pension out after 50 (55 from 2010). The other 75% remains invested but you reduce your death benefits and you cannot take a second bite of the cherry when you are 65 or whatever. Irrespective of what the crystallised fund grows to.

my other thought is putting the money into investment?

Ok, dont mean to sound rude here but what have you been reading or watching? Whatever it is, it's complete rubbish.

A pension is a tax wrapper. A container for investments. A pension doesnt make or lose money. It contains investments that make or lose money. SO, when you say you want to put it in an investment, you are already invested within the pension.

Lokolo

Spread the love dunston, spread the love