will anybody buy my pension

molerat

lvader wrote: »

Not that I've looked into it but I'm sure I've seen ads about companies unlocking your pension early.

I believe it is called a loan with deferred payment terms.

Loughton_Monkey

molerat wrote: »

I believe it is called a loan with deferred payment terms.

There certainly used to be "Pension Mortgages". Not sure they're used much these days. As far as I know, they are straightforward Interest-only mortgages, timed to mature at the same time as your pension.

You need, then, to build up a high enough pension so that the tax free lump sum is sufficient to pay off the mortgage. You keep the annuity as your 'pension'.

But this is in no way anything to do with borrowing against, or cashing in a pension, since the mortgage and the penesion both operate as totally standard products with totally standard terms.

Any Interest-only mortgage is just that. The only debate is how you fund repayment, and there are hundreds of methods:

- Endowment Policy
- Pension
- ISA
- Normal Savings
- Green Shield Stamps
- Inheritance from Great Aunt Ethel
- Highly leveraged offshore Estonian pig-farm Unit Trust

When Quantative Easing has finished - with high inflation - I expect many people these days will be able to pay off the principal in 25 years with their final weekly wage packet.