Susan worked for her employer for 20 years. She was made redundant in 2011 but was still 9 years away from the retirement age of her Defined Benefit Scheme. She was now working for a different company but on a lower salary than she had been previously. 

Pension Case Study Susan

Susan had a commercial investment property which was leased to a small company. The lease was just sustaining the mortgage but was ending in less than 12 months and would need some upgrading. She also had a residential property which had a mid-sized mortgage. The property was in need of refurbishment and was vacant as a result.

Susan had decided to use part of her pension to refurbish the properties. This would result in an increased rental income. Susan was effectively trading in part of her pension to secure a greater regular income.

The balance of the funds were invested with a view to increasing the fund value back to its current level by the time she wants to retire.

If you would like to find out if you are eligible to cash in your Defined Benefit pension, get in touch and get advice.

Picture by Larry Koester