My wife and I both work for an airline that recently closed its Defined Benefit scheme as we have now both reached the age of 55 their are options as to what we can do with our "frozen" pension,
Our daughter currently rents a place in London for £1700 a month and we stand to receive a monthly combined net income of £1100 a month from our pension,
So I had an idea, why don't we both transfer our entire pension pot out of our Defined Benefit Scheme and transfer it into a Defined Contribution Scheme and then withdraw the lot (paying our tax) and then buying a property for our daughter and she can then pay us £1100 a month,
Our daughter is then saving money and she is a home owner , and we are receiving what we would have done anyway,
I've done a bit of research and it seems that it's not quite as straightforward as it seems, am I correct in saying that even though I will be paying tax when I withdraw the entire pot I am still restricted as to how I spend the money , is that correct ?
And if so is there anyway round it so that I can buy a property for our daughter ?
For family protection the property would initially be in our name rather than our daughters just in case of a relationship break down further down the line,
Hopefully I've provided all the information that you need, happy to provide more if not.
Thank you in advance.
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