More in this section

Pensions Just Got A Little More Complicated.

Life was challenging enough for the over 50’s

Working to put money aside for retirement after finally paying off the mortgage; helping now aging parents to look after their finances and all the while encouraging the younger generation to save rather than spend so that they can pay back their student loans and some time (soon, oh please let it be soon) own their own home too.

Then it got a lot more complicated.

The Chancellor decided to make pensions more like a cashpoint.

Should we take some pension money out now and give that to the children to get them started? How much tax will we pay if we do? What are the implications for inheritance tax? Should it be a loan or a gift? How will the lender view a loan when looking at son’s application? Pension couple picture

Whilst it can’t solve everything, the Family Mortgage does let us help the children now without giving the money away. We don’t even have to put cash upfront, so we can leave the pension money where it is for now and avoid doing something we might regret.

And now what about the letter for Mum that dropped through the door this week from her old employer’s pension team offering to swap her future pension for a lump sum – is that a good deal? Just where do we start with that ….

By Keith Barber

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

comments powered by Disqus
Family Building Society
Ebbisham House
30 Church Street
Epsom
Surrey KT17 4NL
Follow Us