As each day goes by without pensions being in the press, reports state that hundreds of thousands of people will reach retirement and seeing a shortfall in what they’d expected of their old-age savings. The retirees of tomorrow are now facing disappointment in their future income, with the average person needing to save an extra £66,549 throughout their working life to achieve an income of £17,278 a year. Here at Sell My Pension we can help to give you more information and put you in touch with a sell my pension representative.
If you’re looking at your pension pot and wondering if investing here is worthwhile, you’re not alone. You might even be considering selling your pension or thought; ‘I would like to sell my pension‘.
Selling your pension: the legal side
There are ways in which you can release cash from your pension, however most people will not be able to qualify for this until they reach the age of 55. Under this age it is illegal to sell or release your pension unless you meet specific criteria, which often depend upon the type of scheme you have and whether you’re planning to retire very early due to serious illness.
If you’re between the ages of 55 and 75 however, you might find that releasing cash is a good option if you’re looking for a lump sum payment. Between the ages of 55 and 75, you may choose to take a tax-free lump sum of up to 25 percent of your pension, leaving the rest to form the income you’ll live on in retirement.
There are a variety of reasons why you might choose to sell your pension. You might be looking for a way to fund development to property or emergency repairs. You may wish to help a child through university or pay for a wedding. You may even wish to reinvest your cash into a more lucrative pot.
More and more people are looking at their pensions performance and wondering if their cash would do better elsewhere – in fact, financial advisers recommend a healthy retirement fund be made up of investment in property, ISAs, bonds and pension cash. You might choose to take the tax-free lump sum of cash and place it in an alternative investment. Your pensions adviser will be able to help.
When you come across the term “sell my pension”, it’s not selling it in the typical sense of the word. In fact, selling your pension can be interchangeable with releasing, unlocking or freeing your pension. It simply means taking cash out of your pension in a lump sum before you retire.
To ensure you don’t get caught up in pensions selling scams, make sure you approach only FCA-regulated advisers. These professionals will be able to guide you with regards to whether selling your pension is an option for your specific circumstances. You’ll also benefit from information regarding potential fees and tax charges, so you’ll be completely in the know.
Contact our Sell My Pension team today! We can offer a free NO FEES service, so you are not obligated whatsoever!!