Help Needed on using pension fund as an investment

tom.andrews_2

I am a young professional, with a fairly large amount of disposable income.

My goal over the next year is to come up with a deposit on a house and get a mortgage in around 12 month time.

I am however paying an awful lot of tax - around £3k last month. - And was wondering if there is any tax efficient way to do this.

I was told by someone that a pension fund can be used as a deposit against a house. If this is true and I can make tax free payments into a pension fund then I would be able to save a lot more money. However I do not want to wait until i'm 65 to have access to this money.

Is there a tax efficient way of doing this.

Any help or guidance appreciated.

dunstonh

I was told by someone that a pension fund can be used as a deposit against a house.

That is about as factual as the moon being made of cheese. You cannot use a pension as a house deposit.

However I do not want to wait until i'm 65 to have access to this money.

Actually its 55 before you can get access and even then only 25% of the value. Hence why you cant use it.

Is there a tax efficient way of doing this.

Not really with your 12 month timescale. Cash ISA and savings accounts are the best option.

tom.andrews_2

Thanks for getting back to me on this. I know very little about all these financial options.

You mention that given my 12 month time scale the best option is ISA's and savings accounts. If I was working to a different time scale are there other options? Because I could always change my time scale if there is going to be a better way of doing things.

dunstonh

Typically 3 years if you start to use NS&I certificates (which are tax free) and 5 years if you are using investments. So its a big jump from 12 months.

Dont let tax rule your life.