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Pay off Bounceback Loan or invest in pensions?

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SolarLightxoxo · 14/04/2021 10:37

We took out a Bounce Back Loan for our family business at the start of the pandemic due to the fact we were unable to work. However, we have not used the money as we have been able to diversify into a different type of business that can be done working from home.

Our family business is essentially me and DH (56 and 55). I am conscious that we have no pension plans in place. I am wondering if it would be best to keep Bounce Back Loan of £24000 and invest it in private pensions purchased by our limited company. We would then pay off BBL at a rate of 2.5%, which would cost about £600 per year.

Alternatively, would it just be better to return the money and try to finance pension plans from future income?

Thansk for any advice!

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