Is this an Worthwhile Pension Option

Bursland

I am 58 years old and still have a final salary pension . My current statement shows that I can take a lump sum now of £ 110,000 and still receive an annual pension of £ 16,000 although with the enhanced lump some only 50% of this amount would be indexed linked. .I am at present intending to continue with my employment until I reach 65 . My wife also works and hopefully will continue until the same age , she is 56. We own our property out right and intend to downsize at a later date which may free up some capital .My son is living with his partner at her parents home ,and has just become a Father . They had their own home ,but had to sell up due to his redundancy. He has now resumed employment ,but to return to the propert ladder would be impossible. My question is would it be sensible to invest my lump sum in a property which I could then rent back to him . I have know idea of the tax implications etc. on what would be a buy to let property . Any advice would be gratefully received.

dunstonh

My question is would it be sensible to invest my lump sum in a property which I could then rent back to him .

You can spend your lump sum how you like. Financially it is unlikely to be the best option but you wouldnt be doing it for financial gain. You would be reducing your income and capital to benefit your son.

I have know idea of the tax implications etc. on what would be a buy to let property

Potential for capital gains tax, income tax and inheritance tax. If lending is involved to make up any difference then you may find restrictions from lenders or more refusals as they typically do not like buy to lets to family members.

An outright gift for the deposit may be more suitable.