Pension Release - how it works

No up-front fees, independent, no obligation Pension Review and Recommendations by post, e mail and telephone.


Step 1

Over the telephone tell us about your needs & circumstances

Step 2

We review your existing plans and consider your options

Step 3

If what you have is good we will tell you why.If not we tell you how things could be improved.

If you do not accept our advice and recommendations you have nothing to pay!!

View our 55-second video about Pension Freedom – the changes

Here at Pensionlite we aim to provide the very best advice to anyone who is considering pension release or drawdown.

Pension release is the term used when you access a lump sum of cash from your pension, usually some or all of your tax free cash entitlement, with the intention of taking income or any remaining tax free cash at a later date.

By accessing a lump sum like this your pension can automatically be used to provide a Drawdown facility.

We are proud to offer excellent advice, fantastic customer service and a quick turnaround. We also give our clients an ongoing service that continues beyond our initial advice and we can give you regular reviews of your pension to make sure your remaining pension fund is invested as you want.

At Pensionlite our advice is based on years of experience and expertise and our recommendations are based on what we believe will benefit you most, now and in the future. We take into account all your circumstances and tailor advice especially for you.
Each pension scheme is a unique thing to some extent, so we need all the details of your fund to be able to offer the best advice.

Sometimes to be able to release money from your pension fund, you will have to transfer it to a new provider. This can be time-consuming and could incur penalty charges. Our team will look into your current fund and go through your circumstances with you, along with your aims and aspirations. We will then be able to make a suitable recommendation which you will receive as part of a comprehensive report. This report will inform you of the advice given in writing, the tax free lump sum available, any charges and fees that might apply and the long term effect on your pension.

If you choose to proceed we can arrange for your lump sum to be paid to you as soon as possible.

We aim to help you plan for a secure and comfortable future, and the best solution for you short term may be pension release or pension drawdown or some form of annuity or combination of all 3.

It is therefore vital that whatever is recommended will enable you to change your mind, as your circumstances may do, without restriction or penalty and our advice will include details of your options and things to consider.

Is Pension Release or Drawdown Right for me?

Choosing the right pension options is vital to make sure that you are set for a comfortable future. We can help you decide what is best for you, and whether pension release or drawdown or some form of annuity or a combination of all 3 may be appropriate for you as time passes.

We are experts in our field with years of experience and we offer impartial advice about pension release and drawdown. If you would like to take a lump sum or income or both from your pension we can independently review your situation without obligation and advise you of your various options.

Answers to some common questions:

Am I eligible?

If you are over 55 and you have a pension that you are not currently in receipt of, you are eligible to take a tax free cash lump sum from your fund as well as income and or additional lump sums although the payments are liable to income tax deduction. If your pension is with a current employer this is not a good idea as you would have to opt out of the scheme and therefore losing future employer contributions.

How much can I receive from my pension?

Under the new Pension Freedom rules the amount you can take from your pension pot is only restricted by how much you have. A proportion of your fund, usually 25%, can be taken tax free but any other drawings are chargeable for income tax.

The freedom to access your pension pot is an exciting opportunity but you should remember that the primary purpose of your pension is to support you in later life. You should, before you decide what to do, think about your future finances as well as any short term needs. We can help you decide.

How can I secure my income long term?

To ensure your income lasts your lifetime there are a number of strategies to consider. However, the simple fact is that one has to learn to live within a budget because if the cash you spend exceeds the income and or growth you receive from your funds your income potential reduces and if left unchecked over time will simply disappear altogether.

You need to review the income/growth and your expenditure regularly and adjust accordingly.

The other main consideration is income tax and so where and how you invest your funds can be worth another 20% or 40% of income if received tax free and or by using your personal allowances fully and this is something we will discuss with you.

You can mix and match your investment options so for instance using some of your funds to purchase a short term or reviewable annuity may be worth considering and provide an element of security that direct investment may not.

Your personal attitude to investment risk is something to review regularly as it can be adjusted in line with your circumstances or market conditions very quickly.

Pensionlite provide a regular investment review service in 3 different ways so you can do this in a way that suits you and your lifestyle. We provide an on-line review facility via our clients secure web site, you can chose to review in a paper format or you can ask us to update things regularly and tell you when things have occurred by post or e mail.

Most Pensionlite clients also have access to an on-line 24/7 valuation service so you can be in touch and update from anywhere in the world as long as you have either an internet connection or a telephone.

What happens to my pension if I die?

If you die before age 75 your spouse (or any nominated beneficiaries) can received your fund value as a lump sum or income, tax free.

If you die after 75 the fund can still be passed on but withdrawals/lump sums will be subject to income tax.
If you purchase an annuity, the income will stop when you die unless you build in death benefits from the start, like a spouse’s pension or guaranteed minimum payment period.

How much will your advice cost?

Our initial service from enquiry through to you receiving your Independent and No Obligation Review and Recommendation report is completely free of charge.

If you choose not to follow our advice there is no charge – you only pay for advice you accept!

If you choose to follow our advice and recommendations then all charges will have been declared and clearly shown within your Independent and No Obligation Review and Recommendation report.

Our service is designed to ensure that you are made aware of what your options are, what the implications and risks are of following our advice or not and what costs may be involved, completely free of charge, BEFORE you make any decisions.


What are the drawbacks of pension release/drawdown?

If you take a sum of your pension before you plan to retire there will be a smaller pot of money to provide you with an income, of some form, when needed.

Accessing funds from your pension once you reach age 55 or above, but before retiring, is very attractive and for some irresistible. We are after all human beings and the temptation to spend is all around us.

As a word of warning please remember that other than your tax free cash entitlement and any other pension drawings are classed by HMRC are earned income so liable to income tax at your highest rate of tax in the tax year you take the withdrawal.

To put this another way, if you are looking to make a purchase using funds from your pension please take into account the tax you may pay. If you are liable for 20% tax deduction then in reality what you are purchasing is in real terms 20% more expensive than the asking price.

Taking cash from a pension is not right for everyone.

Yes of course there are emergencies in life that we have to deal with but think carefully before making any decisions and seek qualified advice from an independent financial adviser who is suitably qualified to give it.

Can I still contribute to a pension fund?

In simple terms the answer is yes but if you use the full Pension Freedom rules and are accessing money under Flexi Access rules the maximum you can contribute in a tax year will be restricted to £10,000

These rules can be difficult to understand so please seek qualified advice before assuming that this or any other restrictions will or will not apply to you.

Is taking a lump sum compulsory?

The simple answer is no but please seek qualified advice before making any decisions at this could work against you. It is possible under Pension Freedom rules to receive a regular income made up in part of tax free cash if you do not want to take a lump sum.

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