frozen pension

stevieh

I am in the process of buying a hotel, and have a frozen pension. Is there any way that i can invest my frozen pension into my new venture. Will it make any difference when i am 50 in March ????

dunstonh

Potentially yes, you can buy commericial property within your pension. If you fit the criteria and you have enough in your pension, it can be an ideal.

It isnt straightforward and requires professional advice and you are talking specialists. It will involve an account, IFA and solicitor. There are some negatives as well as advantages so you need to tread carefully and be aware of those before you do anything.

Age only becomes an issue when you head towards 75.

EdInvestor

stevieh wrote:

I am in the process of buying a hotel, and have a frozen pension. Is there any way that i can invest my frozen pension into my new venture. Will it make any difference when i am 50 in March ????

A pension, if in a SIPP, can invest in commercial property, such as a hotel. But the SIPP can only borrow up to 50% of its own value, so it would need to be a biggish pension fund.You need a full SIPP such as this one for such arrangements.

Alternatively, at age 50 you can take benefits from your pension, by moving it to a SIPP and taking out 25% in tax free cash.You could use this money for the hotel. The rest of the money can be left invested without taking an income to be used for a pension later.

If this is a company final salary scheme, such a move might not however be a good idea, as transfer values paid to early leavers are often too low these days to provide enough growth to cover the benefits under the scheme.