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Using pension savings for solar panels
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Joesdad_2
Posts: 2 Newbie
Hi, I'm after advice if anyone has can help? We have the opportunity to buy solar panels for the home and would very much like to buy them fully, not the free scheme. My wife has a pension scheme from a previous company and we are trying to weigh up if it will be better to use some of that and save on energy or invest into another pension scheme. Fairly hopeless when it comes to money so any advice would be appreciated. Our roof is perfect for panels as it is fully south facing and will fit at least 20 panels so will get the full energy allowance.
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Pensions don't generally let you access any money until you're 55. If your wife is over 55, she can take her 25% lump sum and invest this in solar panels.
Failing that, you'll have to use other savings to buy them, or take out a loan, but the interest on the loan will wipe out most of the income from the solar panels.
Do you have the ability to easily extend your mortgage and does this have a suitably low interest rate?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Should have explained sorry, my wife's previous company is asking her to move her pension, and are offering a cash incentive to do that. So the money is there I just can't decide the best way to reinvest0
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Be very careful before accepting such a cash incentive to give up pension rights. It may be a very bad deal in the long term. Might help if you gave some details .
The decison on whether and how to fund solar panels is a quite separate issue.0 -
Should have explained sorry, my wife's previous company is asking her to move her pension, and are offering a cash incentive to do that. So the money is there I just can't decide the best way to reinvest
The first question is whether that's actually wise, as many of the offers companies make tend to favour themselves rather than employee; odd that, isn't it!
As for how to reinvest, that depends on many things, but age and income tax bracket are the main ones. I know it sounds boring, but using some of the lump sum to fund lumps into a pension might be best.
What return do you think you'll get from the panels? 8-9% per annum, or thereabouts? I looked at them myself, but despite our roof being large, the angles and shadowing are wrong, so we'd have been getting 5-6% pa even assuming no maintenance and/or inverter replacement.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
If you have no savings to pay for the solar panels, then you don't hve enough savings to waster your pension.
And any 'deal' where you get paid to give up rights means it is a BAD decision to do so.0 -
Should have explained sorry, my wife's previous company is asking her to move her pension, and are offering a cash incentive to do that. So the money is there I just can't decide the best way to reinvest
Have you not heard how bad this is? It is, I think, being reviewed for legality. It is 90% certain that those who have accepted these 'enhancements' will be eble to get compensation for an equivalent of 'mis-selling'.
As for 'investing' in Solar Panels, then that's your own decision. Personally, I would not touch them with a barge pole. Adn, incidentally, I would never buy a house with them fitted either, and nor would the majority of buyers.0 -
Loughton_Monkey wrote: »nor would the majority of buyers.
Really? Do you have evidence to back this up?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »Really? Do you have evidence to back this up?
Yeh I don't believe this either, I don't mind solar panels being on a house, you get the electric being produced, but just not the FIT payments. But if you haven't paid for the panels - who cares?0 -
I'd buy a house with them maybe, but wouldn't put them up at the current cost of 12K.0
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The only advice I have on this is only install them with a view to cutting your own bill.
The schemes for feed in tariffs and incentives are just that schemes and like all schemes thought up by politicians including pensions, they can be revoked at the flick of a pen.
In simple terms do not trust any investment on anything that relies upon politicians as a return.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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