Unlock my pension to invest in my retirement B&B

Can I take my civil service /mod pension and invest it into a B&B for me to run/own when I reach 55

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  • jem16jem16 Forumite
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    mark911 wrote: »
    Can I take my civil service /mod pension and invest it into a B&B for me to run/own when I reach 55

    The Civil Service pension is a Defined Benefit scheme which will allow a tax-free lump sum and monthly pension. You will be able to take a maximum of 25% tax free although this is unlikely to be your best option as the index-linked pension is very valuable.

    You will also lose about 25% of your pension by taking it 5 years early - assuming your normal retirement date is age 60.
  • AegisAegis Forumite
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    No, a B&B would count as residential property and therefore not be a permitted investment within a pension.
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • atushatush Forumite
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    It would be unwise in the extreme. Instead, sell your house you live in, and use that to buy a B&B when you retire and use your pension to live on when the B&B doesn't give the income you require.

    And if it should give you the income you require, put some of that income into a new DC pension.
  • Andy_LAndy_L Forumite
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    No. The changes to pension rules allowing you to draw it all out as cash specifically do not apply to the unfunded public sector schemes of which the CS scheme is one.
  • kidmugsykidmugsy Forumite
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    atush wrote: »
    Instead, sell your house you live in, and use that to buy a B&B

    If one also took a mortgage on the B&B, the interest would presumably be an allowable expense against income for tax purposes, would it?
    Free the dunston one next time too.
  • atushatush Forumite
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    I would think so, like any business
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