Somewhere To Turn To ?

k0349634

Hi
Hopefully wont be slated for asking such a question, but if anyone knows, you guys might

Am 54 and 55 in 10 weeks time, so have access to my pension fund - currently in a SIPP with Royal London. Pension pot value is in region of £525,000, and has always been my intention to avail myself of the 25% tax free lump sum when I'm of age, leaving the rest until I retire

10 weeks at the moment however seems like a lifetime away as have some very urgent pressing expenses. Am working , don't own a property, and have the most awful credit record for one reason and another. Is there anyone or way where I could potentially get a short 3 month loan against my lump sum (not looking for a huge sum - £1,500 - 2,500).

ALL usual avenues have been tried and failed (did say I had an awful credit record). Have asked work for help and unfortunately they wont help. Have no family or friends that can help either. Nothing of any value worth selling either.

Am not dumb enough to consider pensions transfers to dubious providers. Just seems like a situation where there ought to be a solution in light of having circa £130,000 on the horizon in less than 3 months time, and more than happy to pay whatever interest rate it might be (within reason)

Thrugelmir

Frank and honest discussion with your bank. Would suggest face to face meeting. Be prepared with your plan and take eveything with you. As an opportunity to turn your life around.

xylophone

very urgent pressing expenses.

Could your creditors not wait ten weeks?

Otherwise, as poster above suggests, make an appointment with your bank and see what might be possible.

But once you have your PCLS, what then?

Marcon

k0349634 wrote: »

Hi
Is there anyone or way where I could potentially get a short 3 month loan against my lump sum (not looking for a huge sum - £1,500 - 2,500).

Sadly not. You can't 'pledge' tax free lump sums from pensions or use them as security - but if your creditors know the lump sum is in the offing, why are they not willing to defer payment for 10 weeks? Have you been in touch with one of the debt agencies or Citizens Advice?

Sea_Shell

I'm curious ... how does someone manage to accrue £525,000 in a SIPP and not have any readily available savings to fall back on. I can see that you might have wanted to max out your pension contributions etc. but to do so at the expense of property or emergency savings seems a little odd to me.

Surely you must be pretty financially savvy to have squirrelled that much away over the years, so why no property or savings?

GunJack

Sea_Shell wrote: »

I'm curious ... how does someone manage to accrue £525,000 in a SIPP and not have any readily available savings to fall back on. I can see that you might have wanted to max out your pension contributions etc. but to do so at the expense of property or emergency savings seems a little odd to me.

Surely you must be pretty financially savvy to have squirrelled that much away over the years, so why no property or savings?

That's a very black and white way of looking at things....life can throw allsorts of curveballs at you and there's not always anything that can be done about it. I know plenty of people who are pension-rich, current cash-poor, so not as unusual as you may think...

lisyloo

GunJack wrote: »

That's a very black and white way of looking at things....life can throw allsorts of curveballs at you and there's not always anything that can be done about it. I know plenty of people who are pension-rich, current cash-poor, so not as unusual as you may think...

You can always prioritise liquid cash (unless the pension came directly from employer).

Can you give us a few generalised examples where people had sensible planning p/contingency but still got into difficulties.

Not being nosey/judging but would like to learn if there is anything I need to apply to my own planning.

lisyloo

Have you asked your employer for an advance?
Could you negotiate payment terms with your creditors? E.g. pay more in 10 weeks, you never know that might be attractive to someone who’s not in a rush.

justme111

If one has moved DB pension into SIPP.

maximumgardener

perhaps you have some family/ "good friends" that could help you out , short term?

zagfles

Ask your financial adviser. I presume you have one as Royal London only retail their products via advisers.