Release Tax Free Cash from your Local Authority/Council Pension
Do you have a need to release Tax Free Cash from your Local Government Pension Scheme (LGPS)? Maybe you are in real need for some cash, but not able or want to take early retirement? Or the pension may be surplus to your retirement income needs as these have been satisfied by other pensions or means? If so, the Pension Freedom and Choice Rules is a route you should explore. These rules do NOT apply to the LGPS. 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 LGPS 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 the LGPS.
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
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!
There’s more information on transferring your LGPS Pension and the Freedom and Choice Pension Rules on the LGPS website; link here: LGPS Pensions
A transfer out of a Local Authority pension also needs specialist pension advice if it is valued over £30,000. This is Government legislation and cannot be avoided. We provide this advice. As we have dealt with Local Authority Pension Departments for over nine years, we are well positioned to handle your transfer and cash release professionally and efficiently.
Why use Pensions Matter? As UK FCA Regulated Pension Advisers with the necessary pension specialist authorisation we are able to provide the specialist advice needed. We have been helping ex-members of Local Authority pension schemes release their Tax Free Cash since 2009, which means we have a lot of experience dealing with Local Authorities. 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 and in all likelihood will be a scam. With our expert guidance and knowledge of Local Authorities your transfer and subsequent release of your cash will be dealt with effectively 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 will request the Cash Equivalent Transfer Value and information from the Local Authority
- 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 using one of the major UK pension providers, manage the transfer process 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.