In our weekly series, readers can email in with any questions about retirement and pension savings to be answered by our expert, Rachel Vahey, head of public policy at investment platform AJ Bell. There is nothing she does not know about pensions. If you have a question for her, email us at money@theipaper.com.
Question: I want to gift some of my pension to my twin sons to help them both buy a property. Should I put it into their Lifetime ISA or is there a better way? What tax will I pay on using money from my pension?
Answer: Answer: It is completely understandable to want to help your children get on the property ladder. With house prices still stretching many first-time buyers, lots of parents are looking for ways to give their children a financial boost. If you have built up a sizeable pension, you may be wondering whether taking money from it and gifting it to your sons is a sensible way to help.
The short answer is that you can use pension money in this way, but you should tread carefully. Pensions are designed first and foremost to support you in later life. Before giving money away, make sure you are confident you will still have enough to fund the retirement you want, including any care costs or unexpected expenses. A regulated financial adviser can help you work through what you can afford to give without putting your own future security at risk.
