Pension Transfers (Drawdown)

How they work


Step 1

Tell us about you and your needs...

Step 2

We review your circumstances and consider your options...

Step 3

Your no obligation recommendations are posted.

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

View our 54-second video about Pension Freedoms

Here at Pensionlite we aim to provide the very best advice to anyone who is considering a pension transfer. Our aim is to reduce costs, improve investment performance and lower volatility

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 it is invested in line with your attitude to investment risk.

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 plan to be able to offer the best advice. With your agreement we get this information from your existing providers in writing.

Transfer to a new provider can be time-consuming and could incur penalties and 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 an easy to read but comprehensive written report. Your personal report will compare what you have with what we recommend including benefits, charges and the long term effect on your pension.

  • If your existing plans are good we will tell you why
  • If they are not so good we will advise you as to how they can be
  • If you do not follow our advice there is absolutely nothing to pay

Is a Pension Transfer Right for Me?

If you are thinking about releasing pension benefits before retirement you may be doing it to acquire a tax free lump sum. But before you pursue this, it is important to make absolutely sure that you need this money because it will lead to a lower income later in life.

Our expert team will inform you of the facts and figures that would be involved if this were to be the case.

Answers to some common questions:

What are the drawbacks of pension release?

As mentioned if you take a sum of your pension early there will be less to provide you with an income when you retire. Pension release will not be suitable for everyone and this is why you should speak to our expert advisers.

There is a cost involved with pension release. Annuity rates may increase when you retire, guarantees can be lost as can benefits, and some schemes can impose other charges.

Can I still contribute to a pension fund?

It will be possible at some point to make further pension fund contributions. New contributions will benefit from tax relief as before. This fund can later be used for pension release and at retirement all funds saved will be combined for benefits.

Is taking a lump sum compulsory?

Simply, no. You can carry on working and there is no need to retire, but funds from an existing employer’s scheme cannot be released.

What happens to my pension if I die?

If you purchase an annuity then the income will stop if you die unless you have made provision for a spouse or have requested a guarantee period or value protection. If you are in Drawdown and die before age 55 your spouse or nominated beneficiary can receive the fund value Tax Free as a lump sum or income. If you die after age 75 then the fund can be passed on but does attract a tax charge of 45%.

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 thus lose 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 you have two main choices. You can use some or all of your fund to purchase a lifetime guaranteed income in the form of an annuity or have your fund invested and use a Drawdown option.

There are a number of annuity options including a short term option which enables you to re-visit your income needs and make adjustments. If you take the Drawdown option you will need to apply some common sense housekeeping to what you draw and how your money is invested. Penny wise pound foolish springs to mind. Earn a £ and spend 99p.

In simple terms if you restrict your drawings to the growth in value of your pension fund then it can be maintained for life. You can best do this by reviewing your investment performance regularly, Pensionlite do this every 6 months, and look to take income at the end of each review 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.


Start your enquiry today

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