Defined benefit pension.

Pipthecat

Moonwolf said:

Relying on an income stream that appears particularly vulnerable to legislative changes to replace a guaranteed income is something that should be considered carefully.

I know nothing about running an Airbnb but I suspect any form of second housing is in the cross hairs for future tax rises.

Marcon

bowiesmam said:

I can see similar posts but wanted to get people’s views on our current situation. 

My husband is eligible to take his DB pension this month. We have obtained a Transfer value and it 128,000. The quote from the scheme is 20,000 lump and 380 a month for life.

I am 12 years younger than my husband and way off retirement. My husband unofficially retired 10 years ago to care for our daughter as she has additional needs. We foresee that she potentially will need support for her lifetime. 

We planned to transfer out of the DB scheme and use the money to purchase an addional property which we would use as an airbnb for addional income in the short term but would also serve as a failsafe if our daughter needs a home of her own at a later date. 

We have spoken with pension wise who’s initial free assessment stated it was unsuitable to transfer the pension and if we wanted to seek further advice the fee was £3,000 but the outcome could still be to advise not to transfer. 

We don’t plan to squander the money. We have plans to reinvest. We understand all the risks. What is the l chance of them declining the transfer and us being stuck with a 3k payout for nothing? 

Translated: we've decided what we are going to do and want people here to endorse it.

OP, a lot of people have spent time and effort responding as helpfully as they can, based on nothing more than a few sentences of information from you. It's a shame you aren't engaging, but of course you are fully entitled to ignore everything that's been said and the supplementary questions being asked. You are highly likely to be taking a financial risk which will prove impossible to sustain, not least because you really don't seem to have grasped the risks - not least the significant risk you are taking by investing so heavily in just one asset class. Diversification is a recommended strategy for most people for a very good reason.

The strains of caring for a family member with additional needs can only be understood by those who've actually done it - but PLEASE don't add this sort of financial risk without being far better informed that your post suggests.