Using pension fund towards house purchase

[Travelcrazy]

We are looking to move house and we are wondering if there is a way to use DH's private pension fund to put towards the price so we can get a better property, would he pay tax on it? He is working full time and earns 50k pa.
We wouldn't need a mortgage but if there is a benefit to taking out a 5 year year one will we do it.
Thanks for any help.

If he is of age to have acess to his private pension then he can take 25% tax free but this will affect his future pension amounts. Better to speak to a financial advisor if mortgages are involved in your calculations too.

How old is he? Makes a huge difference....

He is 56 now, thanks for your answers

Yes then, he very likely can take a 25% lump sum now to spend as you like. But do it before the age goes up - 2028 I think.

He'll still be old enough in 2028 to take a TFLS.

The potential issues with early TFLS draws and spending on a house:

• do you have sufficient remaining pension funds for the level of income you want in retirement?
• the sooner you take your TFLS, the less it will be, you haven't given that amount any further chance to grow
• paying more tax in retirement as you have taken all the tax free amount in one go

I would avoid if possible.

Avoid if you can. How much less pension income would he get if you did this? I would also factor in that he may not manage to get to state pension age without wanting or needing early retirement.