Loan or savings?

weebill_2

This has probably come up before, but I can't find it.

The question is - I want to put in a new kitchen costing about £10,000. Should I take out a loan, or cash in some of my life savings (PEPs)?

BTW I will be retiring in the next year . . .

nearlyrich

The temptation to keep savings intact is really strong in most people and if you are not in a position to replace your investment, ie if your income is dropping due to retirement, it is even more of a dilema. However the £10K savings might stop you from qualifying for top up benefits when you retire. The other thing to remember is that you will probably not be getting as much in interest on the money as you will pay in interst on the loan.

Just for the record I had a new kitchen earlier this year and paid for it from savings which I am now replacing.
I am sure you will get lots of advice but in the end you will decide what works for you.