Pension Early Release, Loan Alternative?

mgdavid

atush wrote: »

Have you thought of selling your home and downsizing? Or renting and buying new when your pensions are payable?

with apologies atush, you're skim-reading again

post #5 - 'My house has been on the market for six months but has had no offers but I dont really want to move as I have an elderly parent that lives close by.'

atush

But they could move nearby if they got an offer.


If you do go ahead with the taking the pension TFLS and an income, do still go ahead and rent the room. Then put this money back into a new pension so as to not hinder your eventual retirement.

Bikerdave

I have now spoken to all four of my Pension providers. It was interesting how little knowledge three of them seemed to have about their products. Poorly trained call handlers. But I did get a very helpful and knowledgeable chap at Standard Life who suggested I ask five questions of each of the providers.
1. Are there any Exit Charges or costs to transfer the pension.
2. Are there any special death benefits with the pension.
3. Is there a Guaranteed Annuity.
4. Is there a Guaranteed Growth Rate
5. Is it possible to take 100% tax free.

One pension I have has a 4% Guaranteed growth rate and a Guaranteed Annuity at 60, so I feel this pot £51k is best left alone.

The others will all transfer into one. Then to obtain the £18K I need, this pension is drawndown and converted into a SIPP which SL manages. Cost of facilities, 1% charge to set up, between 0.5 and 2.0% annual charge and 0.25% service charge. Seems a little high to me as I am only paying 0.89% on the pension with them.

All the paperwork is on its way.

I have also made contact with an old IFA I used many years ago, so may yet get some advice from them depending on their costs as I have so little cash to spend on such things.

Thank you all for your comments, I will update this thread in case it is of any interest to anyone else who may be thinking of doing what I am.