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Pension & Debt same size - can I?
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MJI1962
Posts: 37 Forumite
I am in my mid 40s and I have a medium amount of debt.
My pension scheme has a similar amount in it, it is now a stakeholder.
Can I borrow the pensiopn money to clear debt?
My pension scheme has a similar amount in it, it is now a stakeholder.
Can I borrow the pensiopn money to clear debt?
0
Comments
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No. The pension benefits from tax relief on your contributions (and employer gets tax benefits as as well if employer contributions were used) and the fund gets tax free growth. The Govt give you this to encourage you to save to retirment. To stop people abusing retirement funds and taking them early they have a minimum age you can take benefits and that is 50 (55 from 2010). Even then you can only take 25% of it as a lump sum.
In your case, you would not be able to borrow against the pension.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks
Oh dear - that is one source out of use!0
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