Pension Release UK
If you are over 55 and have a UK pension, it may be able to release up to 25% of its value as a cash lump sum. Pension Release is not suitable for most people,as it will reduce the amount of money received in retirement, however it is a last resort option.
Pension Release may be suitable if:
You need to reduce debt and you have no other means of doing so
You cannot meet day to day living expenses and cannot change your circumstances
You have to raise money urgently and cannot do it by other means.
Because pension release will affect how much pension you will get in retirment, it is a decision which needs careful consideration.
The law says you can release up to 25% of your pension in a tax free lump sum. This is known as a Pension Commencement Lump Sum. You may also be able to release further money as an income. You can also choose to split the amount released over two periods - this is known as phasing ie 12.5% now and 12.5% later. It is advisable to less than the 25% maximum allowed.
How Does Pension Release Work?
Your pension may need to be transferred into a new pension scheme. Once the money is tranferred the amount of tax free cash will be calculated and paid to you. You can then use the remaining cash to provide an income or leave it invested until retirement.
Getting Specialist Advice
Pension Release may or may not be a suitable option for you. Get specialist free advice from the leading Pension Release experts - Release My Pension. Fill in the form on their site and they will arrange a convenient time to call you for a free no obligation telephone consultation.
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