Pension V B2L Property

[Fast Bug]

I've recently changed jobs and I'm unsure what to do with the pension pot from my previous company. It's not a massive pot by any means, but enough for a deposit on a buy 2 let property. I'm unsure what to do with it though? I can put in to my current employers pension scheme where it may or may not do well depending on the scheme I put it in and how well that performs. But I'm thinking that putting it in to a rental house might be better long term. Has anyone done the same thing?

I'm 37 if that matters, so still plenty of time to add to a new pension plan.

[prand]

Fast Bug said:

I've recently changed jobs and I'm unsure what to do with the pension pot from my previous company. It's not a massive pot by any means, but enough for a deposit on a buy 2 let property. I'm unsure what to do with it though? I can put in to my current employers pension scheme where it may or may not do well depending on the scheme I put it in and how well that performs. But I'm thinking that putting it in to a rental house might be better long term. Has anyone done the same thing?

I'm 37 if that matters, so still plenty of time to add to a new pension plan.

Are you actually able to retrieve this money without punitive charges and fees? If you were 55 now it may be a different story due to the new pension rules (though sounds like providers and IFAs are trying to make up for any losses).

[walm]

You are very unlikely to be able to put it into a B2L until you are 55.

[Fast Bug]

Why wouldn't I be able to do it until I'm 55?

[BoRED S2upid]

Fast Bug said:

Why wouldn't I be able to do it until I'm 55?

Rules about accessing your pension pot it's tied up.

[Sharted]

SIPP maybe?

[Fast Bug]

Well that's pissed on my chips then!

[oldaudi]

I don't think you'll actually be able to get your hands on the cash anyway until you are 55. You'll be able to transfer it to a SIPP though and perhaps you'll be able to do something with property there.

You can't just cash out all the money from a pension that you and a previous employer have been paying in to. The tax would get very messy and I don't think it's allowed regardless of the length of time the scheme has been running

Put it into a SIPP and have some fun investing it and making money

[acd80]

oldaudi said:

I don't think you'll actually be able to get your hands on the cash anyway until you are 55. You'll be able to transfer it to a SIPP though and perhaps you'll be able to do something with property there.

I'm a similar age to the OP - will it not be 57 by the time he reaches that age (if it doesn't change again!)?

[red_slr]

Its still 55 although may change some time soon.

[rufusgti]

But which would be the better. I'm weighing up starting a pension or ploughing more into BTL. I'd imagine a bit of both is wise. But I work with guys who've payed in for 40 years and although the lump sum at retirement is a nice thing, the monthly payments are crap.

[98elise]

Sharted said:

SIPP maybe?

No good for residential B2L

[walm]

rufusgti said:

But which would be the better. I'm weighing up starting a pension or ploughing more into BTL. I'd imagine a bit of both is wise. But I work with guys who've payed in for 40 years and although the lump sum at retirement is a nice thing, the monthly payments are crap.

The monthly payments are strongly influenced by interest rates.
Not sure if you have noticed what happened to them over the last few years!!

[98elise]

red_slr said:

Its still 55 although may change some time soon.

Is that right? I'm 50 and hoping to retire at 55

I was going to push a lot of cash into my pension over the next 5 years. I stopped paying anything over the last 5 years because of the restrictions and poor return. With the current rules pensions looked like a worthwhile investment again.

[red_slr]

rufusgti said:

But I work with guys who've payed in for 40 years and although the lump sum at retirement is a nice thing, the monthly payments are crap.

I think this is why you must mix your investments these days.
Access is the key. Pensions can only really be drip fed back to you.
I plan on my pension making up about 1/3 to 1/4 of my retirement.

[turbobloke]

red_slr said:

rufusgti said:

But I work with guys who've payed in for 40 years and although the lump sum at retirement is a nice thing, the monthly payments are crap.

I think this is why you must mix your investments these days.
Access is the key. Pensions can only really be drip fed back to you.
I plan on my pension making up about 1/3 to 1/4 of my retirement.

Am I right in thinking that from 2016 there will be an additional option to take cash by selling an existing annuity, without the punitive tax consequences? It cetainly makes sense these days to mix it up a bit.

[red_slr]

Not sure on that TBH but as it stands these days I am very wary of pensions because the rules change so often.
The changes last year shocked me given I have already been paying into mine for 15+ years.
Still you live and learn and at least I have time left to mix it up a bit.

[sideways sid]

OP, you can always leave move the pension cash into a SIPP, then invest in property companies to get a similar exposure to residential property, but without the headaches and tax!