How does Pension Cash Release work?
You are probably aware the new Pensions Freedom Rules 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.
You will need to move your pension fund into a Flexi Access Drawdown pension. This is the type of pension product you need to withdraw Tax Free Cash from your pension fund. We research a suitable pension provider, with this product, for you. Once your fund is transferred you can access the tax free cash or even the entire pension fund if you wish.
Provided you are aged 55 or over and not taking an income from your pension you are able to access cash from your pension. 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.
- We obtain the necessary information from your current pension provider to find out how much cash you can take
- We’ll research the best available Flexi Access Drawdown pension provider for you and advise how to access the cash using the best option for your particular circumstances
- 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.
Start your enquiry by going through the “I am Interested” section. Provide you meet the criteria you will navigate through the enquiry form. Complete the enquiry form with your details and the details of the pension you are considering releasing cash from. 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 Freedom & Choice 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.