Is pension release right for me?
Taking pension benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. The most important fact to understand about early pension release is that it means you will forego part of your income later in your life - so it is not something to embark upon lightly.
Are there any disadvantages?
Taking pension benefits early will reduce the amount you will receive in retirement so it is not something to embark upon lightly. Pension release is likely to be suitable only for a limited range of consumers and circumstances which is why specialist advice is highly recommended.
There is a cost. This can include the possibility that annuity rates may be significantly different when you come to retire, as well as the loss of guarantees, benefits and discretionary increases from some schemes.
Why Pensionlite
Pensionlite are committed to providing people considering unlocking money from their pension with quality advice, excellent customer service and a fast turnaround. We also believe that our clients should receive first class on - going service and are dedicated to providing regular reviews of your pension funds to ensure they will remain invested in line with your attitude to investment risk, your aspirations, circumstances and market conditions.
As pension specialists we will ensure the advice and recommendations you receive are of the highest standard and presented in a way which is both informative and easy to understand. All of your personal circumstances will be taken into account to ensure you are provided with individually tailored advice.
Can I still contribute to a pension?
Just because you take some tax free cash now does not mean that you cannot, at some point, continue to make additional pension contributions. Any additional/new contributions you make will still attract tax relief. Should you do this you will also be building another pot of money from which more tax free cash can be taken. At retirement all of your retained and saved funds will be added together to produce benefits.
How much could I receive?
This depends on a number of factors including the size of fund and your objectives. We will always identify the maximum benefits you are entitled to. In the majority of cases, 25% of the transfer value of your pension can be released as a tax-free lump sum. However, it is important to plan for your retirement and whilst releasing some much needed cash immediately may be your priority you also need to pay particular attention to how the remainder of your fund is invested. Our specialist advisers will provide initial and ongoing investment advice to ensure your funds are invested in a way which addresses your age, circumstances and attitude to investment risk. As a firm specialising in pensions, as opposed to a general IFA, the facilities we provide at Pensionlite can ensure you have ready access to information, valuations and free fund switches 24/7 via a secure internet link.
Who can benefit?
Anyone currently over age 55 can take Tax Free Cash from their Pension Fund.
Do I have to retire to receive a lump sum?
No - you can continue to work, there is no need to retire. However, it is not possible to arrange for funds to be released from your current employer’s scheme where you are still eligible to make contributions.
How does it work?
Pension schemes can prove extremely complicated and difficult to understand. Your own pension fund is unique to you so full details of your existing pension arrangements need to be obtained by our adviser support Team.
Unless your current pension plan is able to release your benefits directly to you, it may be necessary to transfer the pension fund to a new plan in order to release these benefits early. This could take time and could incur penalty charges.
One of our team will contact you to obtain a detailed understanding of your personal objectives and circumstances, before explaining the options available to you and any advantages or disadvantages of releasing benefits from your pension now. Your adviser will then make a suitable recommendation, which will be sent to you in a comprehensive report detailing the advice given, the tax free lump sum available, the charges and fees and what the long term effect may be to your pension income at retirement.
Should you decide to proceed, we will arrange for your tax free lump sum to be paid directly to you as soon as possible.
How much do we charge?
There is no charge to investigate your pension plan and inform you of your options. It costs nothing to find out how much you are entitled to before you decide whether to proceed. You will be fully informed of any charges and fees involved when your adviser writes to you with their recommendation. In the majority of cases our clients choose to have charges applied to their pension fund rather than have to pay fees or have money deducted from their Tax Free Cash entitlement.
Is pension release suitable for me?
If you are considering releasing pension benefits early, your objective may be to obtain a tax free lump sum. Before you proceed, you must be satisfied that you have a genuine need for cash which justifies the loss of income you will suffer later in your life.
Our specialist pension adviser will inform you of the facts and figures involved, and other issues you need to consider before a final recommendation is made. However, you are the best-placed person to understand if your objective for cash is real (and therefore justification for the cost of early pension release) or not. Unless you have a genuine need, releasing pension benefits early is unlikely to be suitable for you. |
