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Using pension to help pay off debt
Gareth1985
Posts: 7
Forumite
Seeking advice regarding paying off debt by stopping my pension for a year or two?
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Comments
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Not really enough information.I am not a cat (But my friend is)0
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How much total debt do you have?
How much is your total annual income?
In fact, why not post up your Statement of Affairs (SOA), so that we can see your exact financial circumstances? Then someone will be able to give you some helpful advice. ThanksI work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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Personally wouldn’t. About the only sensible financial thing I’ve done is put money into my pension.
Do your employer match your contributions at all? What type of pension is it? Mine is average salary so makes less sense.
Also remember the extra pay will be taxed...August 2019: £28.8k
November 2020: £0 (0% interest)
My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320
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Agree with RyanM - I don't think its a good idea at all. Your pension is your income in your old age, and even missing a couple of years will make a difference as to what you will have to live on.
There are all sorts of other things that can be done/considered/given up to help you get on top of your debt. Willing2learn's suggestion of the SOA is I think the best first step for you.Sealed Pot Challenge no 14
Fashion on the Ration - 66 + 10 carried forward.
3 bras 3/76, + Tevas 8/76 + shorts 14/76 2 pairs of flipflops 24/76 2 bras 26/76 2 pairs black trousers 36/760 -
Probably a bad idea depending on how much you pay and how much your employer pays. Disastrously bad idea if its a final salary scheme.Gareth1985 wrote: »Seeking advice regarding paying off debt by stopping my pension for a year or two?0 -
No I would not recommend that. First you miss out on the tax relief so you wont save as much as you think you will. Second you miss out on the employer contribution which will not be made up. Surely there are other things you can cut first before that? Put an soa up here.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php0
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