How it Works

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How does Pension Cash Release work?

How It Works   /   More Information

You are probably aware of the new pension flexibility rules that were introduced in last year’s Budget and are now in force. These rules allow you not only to take the Tax Free Cash from your pension but also additional cash if you need to. You should also be aware that if you take any additional cash from your pension over and above the tax free amount will be taxed.

Provided you are aged 55 or over and not taking an income from your pension you are entitled to access cash from your pension now. There is no need to wait until retirement age.

The process to access and release the Tax Free Cash from your pension has three very simple steps.

  1. We obtain necessary information from your current pension provider to calculate how much cash you can take
  1. We’ll research the best available cash release option for you and let you know how to access the cash using the best option for your particular circumstances
  1. Your pension is transferred to a major UK pension provider that has the most appropriate cash release pension product. They pay your tax free cash direct into your bank account

Pension Scams – A Word of Warning

Before you start the enquiry process to investigate your cash release options you must ensure the organisation you choose is authorised and regulated by The Financial Conduct Authority (FCA). This is vital to ensure you have full consumer protection. NEVER use an organisation that is not registered with the FCA. If they are not on the FCA register they are, in all likelihood, scammers and should be avoided at all costs. You can check our credentials on the FCA register here: Register and enter our firm reference number 490166 in the appropriate box.

Obtaining Information

Start your enquiry by going through the “I am Interested” section. Provided you meet the criteria you will navigate onto our second page which will ask you to complete your pension provider’s information. A “letter of authority” will be generated. This letter gives us permission to request only the information we need from your existing pension provider to calculate how much tax free cash you have available. Send this to us at our Freepost Address – there is no need for a stamp. If you are unable to print off the letter we will send you a copy in the post.

Communicating your Options

Once we have gathered the information on your pension(s) we will inform you how much tax free cash you are able to release. This is done via email so you obtain your options quickly. If you wish to release your all or part of your tax free cash lump sum we will send you the necessary paperwork.

Accessing your Cash

It is highly likely your existing pension provider will not have a suitable pension product in their suite of pension products that will allow you to access your tax free cash without the need to take an immediate pension income/purchase an annuity. Indeed if you access your tax free cash via an annuity purchase it will mean you will not be able to benefit from the new pension flexibility rules. Therefore we research the UK pension provider market on your behalf to find the most suitable pension provider that has a suitable pension product. Once the pension provider receives your pension fund from your existing pension they send your tax free cash on the same day direct to your nominated bank account.

You are in total control from start to finish. We will inform you how your application is progressing and when you are likely to receive your tax free cash.

Our Charges and Fees

There is no charge for us to investigate, research and communicate to you the amount of tax free cash you are entitled to. It is only if you decide to proceed and release your tax free cash our fee becomes payable. In the vast majority of cases our fee is taken from the remaining pension fund. This means you receive the full amount of your tax free cash from your pension.