Can I get some sort of loan to access PCLS early?

lisyloo

What wrong with a plain old personal loan? From 2.9%

https://www.moneysavingexpert.com/loans/cheap-personal-loans/

NoMore

I've no idea if this is a reason but could see it being a problem for what you describe about loan secured on pension - what happens if you die early ? Pension goes to your widow with no obligation to payback ? Not sure, somebody may well know, but I'm guessing that could be a factor in why not many do it.

ProDave

lisyloo wrote: »

What wrong with a plain old personal loan? From 2.9%

https://www.moneysavingexpert.com/loans/cheap-personal-loans/

I am leaning to that being the solution.

The downside of a simple personal loan is I will be repaying the capital over the period, which requires me to have more income (i.e spend less of it, I had been funding the build by spending earnings)

What I had been hoping for when starting this thread was a way to get a loan over 4 years, repaying just interest over that time, then repaying the whole loan in one lump when I receive the PCLS

Marcon

ProDave wrote: »

I don't see why I can't just borrow an amount no greater than the PCLS knowing it will be repaid when the PCLS is paid out on a know date. I would then have the same pension as I expect, and when the house eventually sells, the proceeds from that will replace the lump sum I have borrowed and spent on the new house.

I had hoped I could find someone willing to loan on that basis at a realistic interest rate. Not someone that wants to fleece me and rob me of my pension.

Most DB schemes provide for a member to forfeit their pension if the member tries to assign their pension, use it to back a loan etc. The law doesn't permit what it charmingly calls 'alienation' - and that's what you want to do.

sandsy

ProDave wrote: »

.But there is absolutely no flexibility and no provision to take that at anything other than age 60.

The website suggests early retirement with actuarial reduction is possible?

squirrelpie

The downside of a simple personal loan is I will be repaying the capital over the period, which requires me to have more income (i.e spend less of it, I had been funding the build by spending earnings)

Perhaps the solution to that is to borrow a bit more, so that you can spend the extra on the build instead of the income that you are now using to pay back capital?

xylophone

The website suggests early retirement with actuarial reduction is possible?

I had gathered this impression but of course (I couldn't see any information about the factors), the actuarial reduction could be fairly hefty.

The OP doesn't want to return to full time hours but I am wondering whether six months extra hours (for him and his wife) might not net the required sum.

ProDave

sandsy wrote: »

The website suggests early retirement with actuarial reduction is possible?

Link please?

I know the scheme administrator has changed recently. When I enquired, by telephone, to the previous scheme administrator, I was told there was no provision to pay the pensiuon other than at the normal retirement age, in this case age 60.

drumtochty

[FONT=&quot]I know you do not want to get a job, but life is just hard at times![/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]You both have a shared asset and that is the ability to get another short term job.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Rather than go over the same argument here a good few times and moaning about all those bad organisations whom will not give you a loan. Smell the coffee and get a job to tide you over the issue and cash flow problems if putting your tenant out the house reduces your income further.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]You appear to complain too much![/FONT]

xylophone

Link please?

Is this your scheme?

http://www.uk-atomic-energy-pensions.org.uk/files/downloads/download1341.pdf


Actuarially Reduced Pensions
If you are over the age of 55 and have deferred benefits, you may draw this subject to an actuarially assessed reduction for early payment.




http://www.uk-atomic-energy-pensions.org.uk/FAQ.htm#1723

Can I get early access to my deferred benefits?

Deferred benefits are payable on reaching scheme retirement age or they may be paid early under Actuarial Reduction. They may however be paid earlier but only in cases of ill health and exceptionally on compassionate grounds for members over age 50.