‘Selling your pension’- this phrase may sound to be somewhat strange. Almost all of us are entitled to get pension from the respective governments or the professions with which we are related during our lifetime. The pension is provided to all people after the retirement. There is set amount of pension that is released each month to the pensioners, depending upon numbers of factors, by the concerned authorities. At the same time, it is also true that certain situations in our life demand us to sell pension and get cash in lieu of it even before retirement. Due to shortage of funds for certain emergent and inevitable reasons as discussed below, many people opt for selling their pension.
Unexpected medical expenses
During your life, you may come across some unexpected but expensive medical expenses for your own self or some close family member. Since you may not be able pay off medical bills from your routine monthly income therefore you may opt for selling the pension and meet the emergent medical expenses.
Sudden loss of job
Under certain circumstances, some people lose their job suddenly. Again you may fall short of money after few days and need to have some cash flow so as to keep all the domestic and other expenses running smoothly. Again you may look towards your pension and plan to sell off the same and compensate for the routine expenditures. In fact, it is the most popular reasons as to why people sell pension even before retirement age.
Investment in property
You have yet another good reason to sell pension. And it is investment in property. Some people like to invest in properties for residence purpose or to make a source of living following retirement. They need funds or some lump sum amount of cash to pay off for the property purchased by them. They sell their pension and get the huge amount of money in one shot.
Purchasing a new vehicle
Due to low salaries or excessive expenses in day to day life, some people are unable to afford a vehicle from their monthly income. But they may need a vehicle surely. To fulfil this need, large numbers of people prefer selling their pension and pay off the entire amount for the vehicle with the cash thus received. It rules out the need to pay off any monthly instalments against purchase of the vehicle.
Investment into a new business
In an effort to make a permanent source of income after retirement, many people invest into small or big businesses by getting the money from selling off their pensions. By getting the requisite amount of money from selling their pensions, they are able to start a new business successfully.
There may be many more reasons in the list for selling your pension. It all depends upon personal choice, preferences and requirements. What is most important in this case is to secure your future after retirement by investing the money thus received in an intelligent manner.