Unlock my pension to invest in my retirement B&B

mark911

Can I take my civil service /mod pension and invest it into a B&B for me to run/own when I reach 55

jem16

mark911 wrote: »

Can I take my civil service /mod pension and invest it into a B&B for me to run/own when I reach 55

The Civil Service pension is a Defined Benefit scheme which will allow a tax-free lump sum and monthly pension. You will be able to take a maximum of 25% tax free although this is unlikely to be your best option as the index-linked pension is very valuable.

You will also lose about 25% of your pension by taking it 5 years early - assuming your normal retirement date is age 60.

Aegis

No, a B&B would count as residential property and therefore not be a permitted investment within a pension.

atush

It would be unwise in the extreme. Instead, sell your house you live in, and use that to buy a B&B when you retire and use your pension to live on when the B&B doesn't give the income you require.

And if it should give you the income you require, put some of that income into a new DC pension.

Andy_L

No. The changes to pension rules allowing you to draw it all out as cash specifically do not apply to the unfunded public sector schemes of which the CS scheme is one.

kidmugsy

atush wrote: »

Instead, sell your house you live in, and use that to buy a B&B

If one also took a mortgage on the B&B, the interest would presumably be an allowable expense against income for tax purposes, would it?

atush

I would think so, like any business