From the age of 55 you have the right to take Tax Free Cash from your pension (usually 25% of the fund value) and leave the remaining fund invested until you chose to retire or use your pension to take an income.

How much can I take?

How much you can take depends on factors such as the size of your fund and your financial objectives. In most cases up to 25% of your fund can be released as a tax free lump sum. As your long term retirement goals can be affected by taking cash early from your pension, our retirement advisers will also provide investment advice for your remaining funds. You must note that taking funds from your pension may result in you investments not growing sufficiently to provide the income you expected at normal retirement age.

Will I have to retire to release a lump sum?

There is no need to retire - you can continue to work. You must remember however that it is not possible to arrange for funds to be taken from your current employer's scheme where you are still eligible to make pension saving contributions.

How do I get access to my lump sum?

Due to the complex nature and individuality of pension schemes, we can only advise on how to access your pension fund after one of our Advisors has obtained full details of your pension arrangements.

If your pension plans are unable to release benefits directly to you, it may be necessary to transfer the pension to a new plan in order to release pension benefits early. This might take time and you could incur penalty charges.

If you think releasing cash from your pension might be of benefit to you, one of our Advisors will contact you to obtain a comprehensive understanding of your pension position and will compile a full report for you. All details of any costs and charges and fees, advantages and disadvantages will be detailed. We will also detail what the long term effect will be to your pension income at retirement.

When will I receive my money?

How long the process takes is dependent on three factors.  The first is how quickly you return the questionnaire forms we send you. The second being how long it takes us to collate up to date information from your pension providers. And the third being how long it takes your pension provider to implement the changes you might request.

We would expect the process will take a minimum of 8 weeks. As you can see, pension release is not a quick fix solution to your problems. 

THE DISADVANTAGES OF RELEASING TAX FREE CASH EARLY

Taking pension benefits early can have many disadvantages and it is important to explore alternative options before embarking on this course of action. Borrowing the money from elsewhere, selling or cashing in your other investments may also be a better long term option.

Releasing cash from your pension may seem like an attractive option but you do need to stop and think about whether you really need to do it. It is rarely in a persons long term financial interests. Its only when you have an immediate need and no other alternatives that you should consider doing it. Taking cash from your pension will affect your income in retirement so you need to think carefully before deciding to proceed with this option.

If you still wish to proceed

We will still provide you with a free, no obligation pension report, so it will not cost you anything to explore your options. We will inform you of any charges and fees involved as part of the report we send.