'new pension freedom'

atush

If that is the only 2.5K to 3K income you will have in retirement, it is better than nothing. Otherwise there will be no retirement. If you have no income presently, how are you affording to live? The State pension isn't really enough.

At least with no income, you can use your PA to mop up some of the 75% and take it out of tax.

JennyF

atush wrote: »

If that is the only 2.5K to 3K income you will have in retirement, it is better than nothing. Otherwise there will be no retirement. If you have no income presently, how are you affording to live? The State pension isn't really enough.

At least with no income, you can use your PA to mop up some of the 75% and take it out of tax.

I don't need the pension; I have a very large sum of money tied in the family home, which I will be selling in the next few years, as I said.

atush

A bird in hand? I'd sell it now then, you never know what is coming up.

I have a very large sum locked into my current family home. But will not count on the cash until it is cash in hand.

JennyF

I doubt prices will drop much where I live - they may stabilise and not see the same massive rises we've been seeing lately, but I think it's unlikely it will lose much value. I cannot sell up and move for another year or two for a number of reasons. If I could then I could just help my daughter out now with that.

Bootsox

atush wrote: »

A bird in hand? I'd sell it now then, you never know what is coming up.

I have a very large sum locked into my current family home. But will not count on the cash until it is cash in hand.

Once interests rates start going up property prices are going to be toast.

JennyF

Bootsox wrote: »

Once interests rates start going up property prices are going to be toast.

In some areas for sure, but it seems that large parts of London and much of the Southeast tend to have their own rules. It seems that building more properties will be the only way of bringing about real price correction in these areas. Or putting an end to international property investment could make a big difference. Too many buyers and investors that don't rely on borrowing.

atush

But you are forgetting other values in downsizing. Esp if you live int he golden triangle of london and SE.

If you downsize now, when it is easy to sell (as prices are rising in your area)you will have NO problem selling- your biggest hurdle. Esp if your house isn't in tip top shape and decorated in the current fashion.

Then there are the higher running costs which would drop substantially such as rates, utilities, insurance etc.

This smoney could be saved month on month into a new pension?

JennyF

atush wrote: »

But you are forgetting other values in downsizing. Esp if you live int he golden triangle of london and SE.

If you downsize now, when it is easy to sell (as prices are rising in your area)you will have NO problem selling- your biggest hurdle. Esp if your house isn't in tip top shape and decorated in the current fashion.

Then there are the higher running costs which would drop substantially such as rates, utilities, insurance etc.

This smoney could be saved month on month into a new pension?

I cannot move on for another year or two, for personal family reasons; and I'm lucky enough to not really need a pension; the pension I have is one I paid into over 20 years ago when I was working, before I got married and had a family, after which I stopped paying into it. being able to cash it in early is a nice bonus that I will be able to use to help out my daughter. it's so difficult for younger people to get on the housing ladder these days.

Thrugelmir

JennyF wrote: »

In some areas for sure, but it seems that large parts of London and much of the Southeast tend to have their own rules. .

Or just an obsession with property as being investment.

JennyF

hello noh - thanks very much for your comments on this thread. I will be phoning the pension advisory service tomorrow in hopes of trying to clarify the situation, but just so I am armed with as much info as possible, are you able to perhaps tell me the significance with regard to my situation/query, of the point you made in your post, about the sort of pension that I have? thanks very much if so. I tried to post this question along with a quote to your post, but the system will not allow me to do this for some reason. apparently it's because I'm 'new' and am not allowed to quote previous posts. thanks again.