Shinsei Associates – Borrowing On Your Pension.
Shinsei Associates looks at securing a loan using your pension as collateral.
Shinsei Associates has noted the rising popularity of using pensions as collateral against a loan, as for many people approaching retirement age, their pension fund will be one of their primary assets.
If your pensions fund is sufficient for your retirement in the next few years, but money is needed now for a debt, holiday, investment opportunity or some unforeseen circumstance, then taking a loan against your pension fund may be an option. However, before you head down this route, make sure you understand fully the pro’s and con’s of doing so.
One of the main advantages of this type of loan for those close to retirement is that because it is secured there are fewer hoops to jump through and there will inevitably be a better rate. Shinsei Associates recommends that borrowers shop around for the best offers and also to analyze how much your pension income will be affected.
It is vital that all due diligence is carried out before you take out a load against your pension. Understand fully all of the repayment and interest conditions and be aware of any tax implications. Shinsei Associates strongly recommends that you seek the advice of an accountant before you embark down this road, as there may be better options available to you.
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