Cash From Pension

Spot

I have two policy's from which I can take a 25% lump sum from in one years time. I want to borrow against this now, who would I contact to facilitate this.

dunstonh

who would I contact to facilitate this.

Pensions are held in trust and you cannot borrow against them (in the way you want). It would have to be a standalone agreement with your bank to lend you the money.

Also, next year the earliest age to take benefits rises from 50 to 55. Are you the right side of the change?

Is taking 25% the right thing to do (it isnt in most cases).

EdInvestor

dunstonh wrote: »

Is taking 25% the right thing to do (it isnt in most cases).

What's the evidence for this?

Spot

The date for the change is 6th April, my birthday is before that date. The bank isn't interested as it doesn't fit into their box ticking exercises, "the computer says no"..! It seems a fairly simple thing to me. I will have an amount at a set date! Who will lend to me against that amount and earn themselves some money into the bargain.

dunstonh

What's the evidence for this?

The number of fines and reprimands the FSA are giving out would be a starter.

However, the fact it reduces death benefits, increases taxation and generally lowers retirement benefits overall for most people would be a good starting point.

Who will lend to me against that amount and earn themselves some money into the bargain.

No-one will directly as they cannot assign the lump sum from the pension to them. It will have to be treated as a normal unsecrured personal arrangement.

Debt_Free_Chick

Spot wrote: »

The date for the change is 6th April, my birthday is before that date. The bank isn't interested as it doesn't fit into their box ticking exercises, "the computer says no"..!

That's because you cannot charge money from a registered pension scheme as security/collateral for a loan. The lender simply has to trust you to use the cash to repay the loan and, as they cannot force you to use your pension money to do this, they simply ignore it.