Pension Release

Are you over 50?  Have you been paying into a Pension Scheme?  Do you need cash now?  Pension Release may be able to help.

What is Pension Release?  Normally, when you pay into a Pension Scheme there is a specified retirement date at which the scheme is designed to mature.  You may decide to retire before this date - in which case you would need to arrange for your pension to be paid earlier.  Pension Release (also known as Pension Unlocking) allows you to take some of the benefits of your pension before you retire.  With Pension Release may be able to obtain a lump-sum of cash, a regular income or a combination of both, whilst you continue working.

Benefits of Pension Release  The money in your Pension Scheme is yours - you've worked for it.  However, because pension schemes take advantage of various tax incentives (you do not normally pay tax on contributions into your pension scheme),  there are constraints imposed on when you can access the money and what it may be used for.  It is, after all, intended to provide you with an income during your retirement.  But sometimes in life, things do not always run to plan.  What if you find yourself in financial difficulties - an accumulation of debts or a business failure?  What if you have a once in a lifetime opportunity for an investment or to fulfil a lifelong dream?  What if you want to enjoy the fruits of your labour whilst you and your loved ones are still well enough to appreciate it?  If you decide that cash or an additional income now is worth more to you and a larger sum or a greater income in the future, then there may be benefits to releasing some, or all, of your pension savings.

Costs of Pension Release  Pensions are designed to be long term investments - by releasing these savings early, you may not realise the best returns.  Of course, if your pension scheme has been closed early, there will be less money in it - possibly much less - less time to pay in and less time to earn interest.  It doesn't stop there - if you are seeking to purchase an annuity to provide an income  with some or all of the money released, then, because you are younger, the annuity you will be able to buy  for a given sum of money will be less - much less.  Finally, if you do not comply with the tax legislation, you may find yourself liable to pay some of the tax that would have bee due had your money not been paid into a pension scheme.

Pension Release Quotes  If you still think you may prefer some of your pension savings now, then various companies offer a Pension Release service.  Investigate a few to find out there terms and conditions and costs.  To make sure your compare like for like - look at how much you will receive after deducting their costs.  Consider not only what you will receive now, but also how much this will cost you for the future.  Make sure you get the right balance - being a little better off today may not seem worth while if you are in poverty in your old age.

Able was I ere I saw Elba

Financial Information Services; Equity Release; Retirement Finance; Annuities, Annuity Calculator; Pension Calculator

Home | Elba-BIS | Site Map | Links