Interesting article from Royal london…
Newly released research from Royal London has shown that savers could potentially risk throwing away thousands of pounds if they choose to cash in their pension to purchase a second property.
The mutual insurer found that 15% of people aged over 55 would consider investing in a buy-to-let property to fund their retirement. However, for those approaching the age at which they can access their pension (45-54) the figure almost doubles to 29%.
Royal London suggests that savers should think twice before raiding their pension as not only would they have to pay income tax on any pension withdrawal; they would also incur costs such as stamp duty.