Cash in or not

LisselleC

I have 4 pensions. I can access my state pension in Nov 2026. I am considering taking the tax free lump sums from 2 of my pensions to help pay for an extension to our property. My thoughts are that this a better idea than getting a loan to pay for the extension. Am I correct?

retiringin26

Without further information on your broad circumstances I doubt anyone can sensibly provide you with a view on this.

eskbanker

https://forums.moneysavingexpert.com/discussion/6657529/cash-in-or-not

As above, not enough information, but how robust are your post-retirement finances? Spending substantial sums on a property extension at pension age is perhaps unusual (when many consider downsizing) - if you still have more than adequate income after raiding pension lump sums then that's obviously ideal, but if the alternative is a loan, how stretched would you be to service that?

LHW99

"our property"

Have you a partner, spouse..? If so, have you looked at the total income and how much the other (and you) would have when the first dies?

Not good to raid pension pots if they may be needed by one of you for paying living expenses, particularly if you can afford the loan while you are both around and earning / drawing pension.

Albermarle

Could be a good idea to think about consolidating your 4 pots down to 2 or just one.

This simplifies admin, can cut costs and will make things simpler when you start to take taxable income from them.

If you do this , it would be better to do it before taking any tax free cash.