Debt is universal and does not discriminate. Whether you are 20 or 65, you can find yourself in financial difficulty. Let’s take a look at your pension and Debt Review.
Most people who are heading into their ‘Golden Years’ have been paying into a pension fund their entire working life and are looking forward to receiving their pension and taking it easy but this is not the case for some. Before we look into Your Pension and Debt Review in more detail, let us see when you are able to access your pension:
When you retire
If you get retrenched
If you resign from your job
Can I Use My Pension To Pay Off Debt?
Yes BUT only if you have retired, been retrenched or resigned and you are able to receive your pension payout, would you be able to use your pension fund to pay off your debt BUT we do NOT advise this.
You pay your monthly contribution into a pension fund – also known as your retirement fund – so that you are able to retire comfortably when you reach retirement age. The cost of living is not going down, nor is it likely to do so. If you take your pension payout and pay off all your debt, you could find yourself at retirement age not being able to afford to retire.
To be blunt, it is a short-term solution that will have long-term consequences.
Can Pensioners Apply For Debt Review?
Yes, pensioners can apply for Debt Review. If you have a measurable monthly income that can cover the payment plan set up by your Debt Counsellor and agreed to by your creditors.
What NOT to do - No, Really - Do NOT Do This
Do NOT try to get access to your pension fund to service your debt. Sadly, we have seen far too many people make bad decisions to get access to their pension fund to pay off debt. These include:
Resigning from their job AND
Getting divorced to access half of each other’s pension fund and remarrying after they have achieved this
All this will guarantee you is that you are postponing your financial worries till later – when you may not be able to rectify the situation. The long-term consequences of these scenarios are that you will come short when you do eventually retire. Do not take what is meant as your retirement fund to service debt. Id you so, you are sure to yourself up for failure.
This Is What You Should Do
Contact Basson Debt Counsellors and speak to one of our very experienced Debt Counsellors about your pension and Debt Review. We believe in walking the road with you, guiding you through a very stressful time in your life.
Step In The Right Direction...
Complete the form below and one of our professional Debt Counsellors will call you back!