Borrowing to fund pension contributions

[Markie BII]

And if it doesn't?

That's a risk only I can judge. I'm interested in the views of the experts here on the other risks.

[BrilloPad]

Also borrowing is cheap, for probably another few months, then it's going to go up.

People have been predicting the end of low interest rates for years. With Brexit they will probably go lower.

However, rather than putting money into your pension you should invest in property. Or if it has to be pension invest in bitcoin funds.

[Markie BII]

However, rather than putting money into your pension you should invest in property. Or if it has to be pension invest in bitcoin funds.

I'm inclined to agree, but expand on property for me - BTL for income generation in retirement? Or as an appreciating asset? Or commercial property (via a pension)?

[BrilloPad]

I'm inclined to agree, but expand on property for me - BTL for income generation in retirement? Or as an appreciating asset? Or commercial property (via a pension)?

For first 2 reasons. Commercial property will not do so well due to Brexit. IMO.

[MB2]

Open a SIPP and put 100 in it that way you will have a valid pension scheme in place. When you have more funds you can catch up the last 3 years so up to 120k in.

You will miss the potential gain on the fund but won't be taking the risk of tying your finances up and still be able to claim the tax relief on the contributions later on.

[SueEllen]

For first 2 reasons. Commercial property will not do so well due to Brexit. IMO.

It's not even Brexit.

Most companies are trying to get rid of or at least minimise property space e.g. offices, retail space due to the costs. The companies who want property want warehouse or factory space in the back of beyond.

[BrilloPad]

It's not even Brexit.

Most companies are trying to get rid of or at least minimise property space e.g. offices, retail space due to the costs. The companies who want property want warehouse or factory space in the back of beyond.

I did once getting commercial property as part of a pension. It was 1% of an office block. The return was okay - not spectacular.

I think I made 8% a year. The unit was let at 8% a year(after fees). The worth of the unit went up 25% over 5 years. I never understood why I only got 8% a year......

[Smartie]

Markets

It's thought that many of the world's stock markets are too highly valued at the moment. Because of record low interest rates and too much QE (government money printing) asset prices including stocks have been pushed up.

Some are saying Europe/Japan look OK and even the UK but basically piling loads of money in now may not be a great idea. Drip feed it in and keep some back for when markets drop if you're going for a SIPP.

Of course that's what most people are doing at the moment in 'the most hated bull market ever'.

[BlandResponsibleName]

Open a SIPP and put 100 in it that way you will have a valid pension scheme in place. When you have more funds you can catch up the last 3 years so up to 120k in.

You will miss the potential gain on the fund but won't be taking the risk of tying your finances up and still be able to claim the tax relief on the contributions later on.

This is good advice. At least open a SIPP now because you can only use allowances from that point.

Personally I'd be inclined to go for it if you've already got a rainy day fund and if you haven't already got a pension.

Another factor is that the chancellor is supposedly looking at targeting pension tax relief in the forthcoming budget. Personally I'm trying to put as much as I can in before he does that. It's the last thing we contractors have got after the dividend tax and flat VAT raids. I wish they'd just cut state spending rather than raise tax (especially on responsible things like saving).