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Pension Loan
Danielj17
Posts: 4 Newbie
Hi I have a company pension that the company are paying into. Last year I transferred in a very large sum from my old pensions. My mother needs a life saving operation which we have to pay for so I was thinking of taking a pension loan. Looking at some of the various loan companies websites I guessing I will have to transfer out what I transferred in, as I still want to stay in my current scheme. Before I start swimming with the sharks just wondering if anyone has any pitfalls to look for
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Comments
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Before I start swimming with the sharks just wondering if anyone has any pitfalls to look for
There is no such legitimate UK product as a pension loan. Those that do these should be considered sharks and likely to charge you an absolute fortune (basically rip you off) and some even use unauthorised methods which could land you with a 55% tax charge with no come back on them as they are not authorised or regulated by the FSA.
Transferring out of an occupational scheme could cost you tens or even hundreds of thousands of pounds of lost money. You should investigate other options before using pension funds.
http://www.moneymadeclear.org.uk/guides/everyday/safe_against_scams.html - see pension liberation scams about half way down and the pdf about 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 -
Thanks I'll have a look into that.0
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Although I can't see any other options at the moment. I've not the best of credit ratings so although I have a huge amount of equity in my house I can't get at it. I transferred £120,000 in to the scheme. If that can get me the £40,000 I need, I don't care ifI end up paying the other £80,000 in fees & tax.
I wouldn't be doing this in normal circumstances.0 -
why won't the NHS pay for a life saving operation0
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Unfortunately we live in the wrong county !!! It's again the case of the post code lottery0
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how old are you?I work in finance
Anything posted on this forum is for discussion purposes only and should not be considered financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation0 -
If you have equity in your property, could you go for a secured loan instead of losing your £120k?
Have you tried lobbying your MP about the operation?0 -
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