Release Cash from your Personal Pension
Are you looking to release cash from your pension? The Pension Freedom & Choice Rules allow you to withdraw cash from your pension provided you are aged 55 or over.
However, before you do, you should give careful consideration to the implications of withdrawing any more than the Tax-Free Cash amount. This is because if you withdraw any amount over the Tax-Free Cash amount, you will severely reduce the amount you/your employer can pay into pensions for you in the future! Also, any cash taken over the Tax-Free Cash amount will be liable to Income Tax!
That’s why we endorse only taking the Tax-Free Cash, if this amount satisfies your need for cash. The Tax-Free Cash amount is usually 25% of the value of your pension. If you do need additional cash from your pension we can still help.
Unfortunately, not all pension providers (e.g. Abbey Life, Aegon, Zurich, Phoenix Life, & ReAssure, to name a few) have a pension product that allows you to only withdraw the Tax-Free Cash. If you have a pension with one of the above providers and only need to withdraw the Tax-Free Cash, you will need to transfer your pension to a pension provider that has a pension product, called a Flexi-Access Drawdown. This type of pension will allow you to withdraw only the Tax Free Cash and leave the remaining fund in your pension.
Do you have a pension with a Guaranteed Annuity Rate (GAR)? If you do, and wish to access the Tax Free Cash, or withdraw the entire pension, you will need to obtain financial advice.
In the two cases above we can provide the advice, recommend a pension provider, help you with the transfer process and ensure the cash you decide to withdraw is paid direct into your bank account.
Notes: Your fund value will need to be over £10,000. These rules do not apply if you are already taking an income from an annuity, or from the Basic State Pension.
To start your no obligation, confidential enquiry complete the form below. Alternatively call us on 0800 177 7794.
Discover how much cash you can release from your pension
Why use Pensions Matter? We have been helping people release Tax Free Cash from their pensions since 2005. We are UK FCA Regulated Pension Advisers. With our expert guidance the release of your cash will be dealt with effectively, properly and efficiently. It is possible to release cash from the majority of UK pensions with the right help and guidance.
Four Easy Steps to Release your Cash
- Complete the “I am Interested” sections
- Enter the details of the pension/s you are considering releasing cash from
- We will research how much cash you can release
- If you decide to release the cash, we will arrange a transfer to a pension which can facilitate the release of your 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.