Withdraw Pension Early

QrizB

LHW99 said:

And you don't get 25% back on money that goes into an ISA....

I think, but could be wrong, that the OP is referring to a LISA.

Spidey_warhol

LHW99 said:

And you don't get 25% back on money that goes into an ISA. It just is tax free on any growth while it is in therre, and tax free when it comes out. If you have spare cash and put it in an ISA you can get that out at any age - but like everything, once its gone its gone.

I do on mine. I have a help to buy isa. But thanks for the comment.

Spidey_warhol

QrizB said:

LHW99 said:

And you don't get 25% back on money that goes into an ISA....

I think, but could be wrong, that the OP is referring to a LISA.

Help to buy ISA  

Spidey_warhol

MEM62 said:

Spidey_warhol said:

and would rather put investment in property than the stock market.  

And how is that going to feed you and pay your bills in retirement?  

There is no better financial instrument to provide for retirement than a pension.   

It’s a relatively small amount from when i wasnt earning very much. I’m not stupid. 

And i must disagree with you. The private investment pension i have wont be worth much if inflation keeps going the way it is. Or if the stock market collapses. Any number of crazy things could happen in the next 40 years. Retirement ages keep rising, i might not even see it.

eskbanker

Spidey_warhol said:

I am 31 and I am wondering if i could withdraw my investment pension to use in my H2B ISA. I have read about the 55% income tax fees, but if i put it into my ISA wouldn’t i get 25% back? I have a much better paying job than i used to and would rather put investment in property than the stock market. 

If you have a much better paying job than you used to, finding £200 a month to fully fund your HTB ISA (without raiding your pension) shouldn't be too much of a challenge?  Remember also that the HTB ISA bonus is only payable towards your first property that you then live in, rather than being usable towards an investment property as such, if that's what you were implying.

Malthusian

Spidey_warhol said:

The private investment pension i have wont be worth much if inflation keeps going the way it is. 

If it's sensibly invested it should keep pace with inflation. When prices rise, businesses make more money and their assets go up in price, which means eventually share prices go up. Not at exactly the same time (hence the fall in 2022) but over the long term. If it's not sensibly invested that's your decision.

Or if the stock market collapses. 

For the stock market to collapse every single business in the world would have to collapse. In other words we are talking about the collapse of the rule of law and civilisation itself. 
If that happens your property will also be worth nothing. It will belong to the Government, the local warlord, or whoever controls the territory on which it sits.

Any number of crazy things could happen in the next 40 years.

Maybe, but all those crazy things would happen to residential property and cash as well. And making yourself poor in retirement isn't going to protect yourself against them in the very unlikely event they happen.

dunstonh

The private investment pension i have wont be worth much if inflation keeps going the way it is

Why not?  Are you not invested in equities?

 Or if the stock market collapses. 

If the stock market collapses then it wont matter what investments you have as we would be back in the dark ages.  Indeed worse than that as most people alive today have no skills they could use for bartering.

Any number of crazy things could happen in the next 40 years. 

Things tend to remain the same for all the changes we go through.   Inflation, fuel crisis, strikes, wars....  all happened before and will happen again.

Retirement ages keep rising, i might not even see it.

It doesn't keep rising.  The average retirement age has remained relatively static at around 62-63.      I suspect you are referring to the state pension age but that is not the same as retirement age.    You retire when you choose to unless you fail to prepare for retirement and have to carry on working.

And as for not seeing retirement; yes you could be the 1 in 6 that do not make it to retirement.  But statistically, you are more likely to be in the 5 in 6 that do.   

cloud_dog

Spidey_warhol said:

MEM62 said:

Spidey_warhol said:

and would rather put investment in property than the stock market.  

And how is that going to feed you and pay your bills in retirement?  

There is no better financial instrument to provide for retirement than a pension.   

It’s a relatively small amount from when i wasnt earning very much. I’m not stupid. 

And i must disagree with you. The private investment pension i have wont be worth much if inflation keeps going the way it is. Or if the stock market collapses. Any number of crazy things could happen in the next 40 years. Retirement ages keep rising, i might not even see it.

So you are aware and prepared for property to possibly lose 40% of its value?

Last time this happened it took many years for the market and confidence to recover; after all why buy a property today when you can buy it at a cheaper price tomorrow.