You Can’t Use Your Pension To Buy Yourself A House
Unfortunately, even if the pension laws allow you to withdraw all your pension, it isn’t easy to buy a new home. No mechanism that allows you to use your accumulated pension pot to finance a private residence exists.
Pensions are a long-term savings programme that provides you with sufficient income in retirement to live in some level of comfort for your home. If you live up to your 80s, you would rely heavily on your pension savings as your main income for 15-20 years.
Even if you pay additional contributions to increase your pension valuation, you won’t be getting enough to buy yourself a home. You will have taxes inclusive of a social charge and other forms of service charges.
Today, with businesses and companies not in a position to honour employees’ defined benefit scheme, there’s a strong likelihood that you may even get less pensions for yourself. Not even defined contribution could fund retirees a new house as your eventual pension is only as good as the investment performance of your contributions, which could devalue at any time.
It is indeed rather troublesome to think that your pension could amount to so much. However, you could put up your pensions for mortgage. But it is highly likely that banks and lenders may shut you out, given that you are already retired and you might find trouble repaying for your property in the near future.
The only way to finance your new house would be to make investments or declare a post-retirement income through a business or contemporary source of income.