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Pension and property
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sarah_id1
Posts: 336 Forumite
Hi,
I am a newbie in pensions. I am 35 years old never subscribed to any pension scheme in the past. I am working for a company who do pretty good private pension scheme in which my 1% contribution will be matched with 2% from my employer. They give the option where I could manage my pension fund and direct it to be invested where I want. Currently I am renting and do not own a property. I was wondering if somehow I could get my private pension fund to finance my property. At least I would have a place to live when I am old
Thanks in advance for any advice.
Cheers,
Sarah
I am a newbie in pensions. I am 35 years old never subscribed to any pension scheme in the past. I am working for a company who do pretty good private pension scheme in which my 1% contribution will be matched with 2% from my employer. They give the option where I could manage my pension fund and direct it to be invested where I want. Currently I am renting and do not own a property. I was wondering if somehow I could get my private pension fund to finance my property. At least I would have a place to live when I am old
Thanks in advance for any advice.
Cheers,
Sarah
0
Comments
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I was wondering if somehow I could get my private pension fund to finance my property.
No. Legislation doesnt allow it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
do you really mean that you only pay in 1% and they pay 2%; if so be aware that this will not provide a very satisfactory pension0
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I assume - and hope - that she means they double the contribution (up to a certain limit). You'd hope so, anyway.0
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I was just thinking that 2% was a bit mean.
Mine was 4% and 6% from the companymake the most of it, we are only here for the weekend.
and we will never, ever return.0 -
Hi
I couldn't agree more, 1% employee contribution and a 2% employer payment does seem rather mean.
Sorry, as previous posters have said you cannot use a pension fund to buy residential property, it can only buy commercial property and even then there are strict rules re how this can be done.
The Cautious Investor0 -
Sorry I mean they double the contribution. if I pay £1000 of my salary they would add £2000 to it.0
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Sorry I mean they double the contribution. if I pay £1000 of my salary they would add £2000 to it.
Again, I doubt that is strictly true. They might double your contribution, but there will be a maximum amount that they would contribute.
Otherwise, their exposure could be massive.0 -
Agreed as then you could potentially triple your salary.
If you were on £50k and you decided to stick the whole lot in to a pension for a year, you would cost your employer £150k.0
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