How Does Pension Release Work?

What is Pension Release?

Pension release or unlocking is when you take the benefits early from a pension that you are not currently receiving. If you do qualify for pension release, you can release up to the maximum tax free cash allowed and take a monthly income or maybe invest the balance to increase your income in retirement.

As you maybe aware, taking any of your pension benefits early is likely to reduce your income at retirement. Therefore, pension release is only suitable for a very limited number of people and circumstances and should not be seen as an easy option for raising cash. This is because a pension is designed to provide you with benefits when you retire.

How does releasing a pension work?

We ask you to complete two forms. This allows us to contact your pension provider to gather all of the information needed to give you a clear and concise overview of your pension release options.

What will happen after that?

Once we have received all of the relevant information from your pension company, we will assign a Pension Release Adviser to you.

Your pension adviser will gather the information needed about your personal and financial circumstances. They will then compare what you could receive from your schemes at your normal retirement date with what you could get if you transfer out of the scheme as by taking benefits early your retirement income could be considerably reduced.

It is important to consider if you will have enough to live on once you retire if you take cash and/or income now.

Your pension adviser will consider how all of the benefits your scheme may provide could be affected. Benefits may include what your family would receive should you die and any ill health pension provision they may offer, possibly if you take an income now, this may alter your tax position, if you are currently receiving any state benefits they may be affected.

Options explained to you

Using all information gathered, your adviser will then discuss your options with you, sending you a written report explaining their recommendation to which option is considered the most suitable to you, detailing both the advantages and disadvantages.

This should provide you all the information you need to make an informed decision, but if you have any further questions, then your pension adviser is always available to help.

If you decide to proceed?

The necessary paperwork is arranged to ensure that you receive the cash lump sum (tax free) and/or income with the minimum delay.

You are under no obligation to proceed with Pension Release at any time. If you decide not to proceed with Pension Release, then there are absolutely NO fees or costs payable. We only get paid if you complete a pension release.

Would you like more information on Pension Release?

Simply complete the Start Your Enquiry form on the right and if you qualify we will send you a FREE Information Pack.

You are under no obligation to proceed and there are no costs involved if you decide not to proceed with Pension Release.