Release Cash from your Final Salary/Defined Benefit Pension
Do you have a need to release Tax Free Cash from your Final Salary/Defined Benefit pension scheme? Maybe you are in real need for some cash, but not able/want to take early retirement? Or the pension may be surplus to your retirement income needs as these have been satisfied through other pensions/means? If so, the Pension Freedom and Choice Rules is a route you should explore. These rules do NOT apply to final salary pensions. They can only be made available via a transfer into a personal pension called a Flexi Access Drawdown plan. The rules allow you to access cash from your pension. Up to 25% of the value of your pension can be taken TAX FREE. The remainder can be left until you need to take an income.
The Pension Freedom and Choice rules only apply to those aged 55 or over. You must also be a deferred member (i.e. not currently paying into the pension). Transferring your final salary pension is only suitable in a small minority of circumstances. It is vital you obtain proper financial advice before you transfer. It is usually not in anyone’s best interests to transfer due to the valuable guaranteed and predictable pension benefits associated with final salary pension schemes.
However, if you wish to explore your options; start your Pension Freedom and Choice, no obligation, confidential enquiry by completing our enquiry form below. Alternatively call us on 0800 177 7794.
Discover how much cash you can release from your pension
Transferring a final salary pension needs specialist pension advice if it is valued over £30,000. This is Government legislation and cannot be avoided.
How does it work? First, we need to find out the value of your pension. This is done by obtaining a Cash Equivalent Transfer Value (CETV). Once the value of your pension has been calculated you are able to transfer this amount into a Flexi-Access Drawdown pension. This is the type of pension that allows you the freedom to access the cash from the pension as you wish. These pensions are provided by the majority of UK pension providers. The new Pension Freedom rules also allows you to take out as much cash as you like from your pension, however any cash taken over and above the Tax Free Cash amount will be subject to Income Tax!
Why use Pensions Matter? As UK FCA Regulated Pension Advisers with the appropriate permissions to transfer final salary pensions, we are able to provide the specialist transfer advice needed. We have helped ex-members of Final Salary pension schemes release their Tax Free Cash since 2007. With many pension scams being marketed, particularly online, you should only use a reputable qualified pension organisation to handle your cash release. You can check our details here: FCA_ Register. Enter our firm number of 490166 and click on “Search the Register”. Never use an organisation that is not on this register as they are not authorised to transfer pensions and are, in all likelihood, a scam. With our expert guidance and knowledge your transfer and subsequent release of your cash will be dealt with effectively, properly and efficiently.
Four Easy Steps to Release your Cash
- Complete the enquiry form and enter the details requested in the remainder of the form
- We request a Cash Equivalent Transfer Value (CETV) and relevant information from your pension scheme administrator
- We provide the expert advice and guidance on how much cash you can release
- If you decide to proceed, we arrange a suitable Flexi-Access Drawdown pension from one of the major UK pension providers and manage the transfer and release of your tax free cash
This service only applies to pensions in the UK. Taking benefits early (pension release) will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances.