Do not let anyone tell you that pension release is easy. Choosing to make this type of choice for your finances is a major life decision that requires extra careful planning. You will probably want to seek extra professional financial advice and get assistance with creating a couple extra backup schemes. This will help you cover your bases and provide a fall back, in case the plans for your released funds do not come to fruition.
If you do not know what it is, a pension release is what we call it when we unlock our pension funds prior to their designated release schedule. Normally you would not have access to these funds until you were retirement eligible, however, in some situations; it is possible to request a lump sum payment. With access to these funds that you normally would not have the ability to use, you can arrange to use the funds to take care of important issues, unforeseen medical events, and even for purchasing properties and annuities.
While it does not take that long to get your pension, it can be confusing and very complicated. For these reasons, you should consider hiring an experienced professional financial advisor to make sure that your release goes smoothly and that it is processed correctly.
There are multiple benefits to using a pension release. To begin, there are not any surprise upfront fees and you have the option to remove funds from pensions that were previously frozen as well. A pension release is for anyone between the ages of 20-55. If you want to start a pension release, just make sure that you are not already drawing benefits from the account you would like to use. In addition, you need to make sure you have a minimum of 15,000 PS in the pension fund, before anyone will allow you to have access to the funds.
Everyone who qualifies has the potential to access up to 90% of the fun early. The first 25% that you take is totally tax free if you request that the funds be released to you in a large lump sum. After the first 25%, you may take more, but you should understand that there is going to be a tax associated with the other 65% that is available. Be sure to consult your financial advisor about any penalties, if any, which you may accrue by participating in a pension fund release.
If you have a pension currently, and it has not performed well in a while, you may be tired or disappointed of the return. Consider a pension release in this situation. In most scenarios, the reasons for using a pension release are equal to the severity of the situation. Other reasons for concern over your current pension can be poor interest rates, frozen pension or pensions that cannot keep up with the current cost of living. If you have any of these issues with your current pension, contact a financial advisor for assistance, and you too can benefit from a pension release.
Contact our Pension Release team today to find out what your options are….