Frequently Asked
Pension Release Questions
Am I Eligible?
Are you over 55 with money in a personal or old company pension scheme? Then you could be eligible to receive a cash lump sum (tax free) and/or income now.
How much will I receive?
The circumstances to each pension differ, so we need to complete a thorough and detailed analysis of your pensions before we can answer this question. Once we have all the information required we can discover what you could receive in tax free cash and/or income or a combination of both.
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.
Is this a loan?
The money in your pension is yours, so this is not a loan and there are no interest payments to make.
What costs are involved?
It is impossible to say, at this stage, what the costs to you would be for releasing your pension early. There could be charges made by your existing pension provider for releasing funds early, there could be guarantees that you are giving up, which in a way are also a cost to you if you lose them. If a new pension company is recommended there would be setting up charges, out of which they would pay our fees by way of a commission.
If you proceed with Pension Release with us, we will provide you with a written report which sets out all the details including all costs and charges.
It is free to find out your options and you are under no obligation to proceed. There is only a cost to you if you decide to go ahead with Pension Release and you will know all the details of any costs before you make a final decision.
Do I have to retire to receive a lump sum?
In a word - No.
You can take tax free cash and or income now and continue to work although we will not be able to release funds from your current employer's pension if you are still eligible to make contributions.
If I draw a pension as well as a lump sum, how will this be paid?
You can have your pension paid annually, half yearly, quarterly or monthly, in advance or arrears, increasing each year or remaining level in payment throughout. You can make provision in the event of your death for a pension to continue to your spouse and / or dependents.
Will the figures I receive change?
They may, depending on what type of pension it is. Typically, Defined Contribution schemes are invested and the values of these investments fluctuate daily. Defined Benefit schemes usually guaranteed their figures for three months from the date they are calculated.
If you are not sure which type of pension you have, please contact one of our advisers who will be able to help.
What happens if I die?
If you die before any transfer takes place, the rules of your current pension scheme will still be applicable.
If a transfer takes place then any death benefits payable will depend on the rules of the new pension set up. We will supply full details at the time.
Will this affect any of my state benefits?
It is possible that your state benefits will be affected if you access your pension. You should contact the Jobcentre Plus and Department of Work and Pensions for full details.
So what's the catch?
You must bear in mind that releasing your pension now means, quite naturally, that your income in retirement will probably be considerably less than if you waited until your normal retirement age.
Do I have to pay tax on the money?
The lump sum payment is tax free. However any income you receive is viewed as part of your regular income by the HM Revenue and Customs, which means that you may have to pay income tax on it depending on your personal circumstances. However tax rules may change in the future.
Do I have to pay monthly premiums to the policy?
No, not if you don’t want to, although there is an option to make further contributions if you wish.
The purpose of this is for you to look at being able to take your money now as either a lump sum, income or a combination of both.
Can I continue to work whilst taking early benefits?
In most cases, yes.
You can draw on your pensions once you reach 55 and continue to work. Many people continue to work even though they are drawing their State Pension and are over retirement age.
The HMRC will include any pension payments you receive as part of your income when working out how much tax you owe. This is normal and will happen whether you access your pension now or later.
Can I sell my pension?
UK law prevents you from selling a pension fund. Pension Unlocking is simply a case of you taking money out of a fund that is already yours.
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 Pension Release Enquiry Form.
You are under no obligation to proceed and there are no costs involved if you decide not to proceed with Pension Release.
