Is a Pensions Release the right option for you ?
It may come as a surprise to you that in the present UK financial climate that a great number of people in the 50+ bracket who find themselves in financial difficulties may be able to use their pension funds now to ease the strain, rather than waiting till later life to utilise their pension benefits.
You are able to withdraw the Tax Free Cash and leave the remaining fund invested to produce your pension income until your planned retirement Yes, it's true, by using Pension Release you can access some of your pension benefits now in date. Pension Release is a method of taking some or all of the Tax Free Cash from your pension (usually 25% of the fund value) and leaving the remaining fund invested until you chose to retire or take income from your pension. From 2010 you will have to be 55 to take Pension Release.
Even if you take benefits from your pension as young as age 50 you can still continue to work and contribute to your pension. This can be done immediately or at some point in the future when your finances are back under control.
Any new contributions will create an additional fund from which you can take more Tax Free cash and additional income. All contributions attract tax relief and can be paid as regular payments or as lump sums. Pensions are more flexible than you may have thought but seek qualified Independent Advice before committing yourself.
Pension Release is a great option for many but you must not lose sight of the fact that. You are essentially taking income today in exchange for forgoing income in the future. You must be fully aware of any hidden costs, and the financial implications of this action in terms of losses as well as the immediate gains.
You should be able to obtain Specialist Pensions Advice free of charge to advise you of your current position and possible options to take.
It should costs nothing to quickly find out how much you are entitled to before you decide whether to proceed. Your existing pension providers may be able to offer a Pension Release facility but it may be that to release the cash you have to transfer your funds. This could incur additional charges. You should ask about any charges and fees involved and have these confirmed in writing. To be treated fairly you should be offered a facility whereby the tax free cash you request is deducted gross from your fund before any charges are applied or fees calculated.
You are able to withdraw the Tax Free Cash and leave the remaining fund invested to produce your pension income until your planned retirement Yes, it's true, by using Pension Release you can access some of your pension benefits now in date. Pension Release is a method of taking some or all of the Tax Free Cash from your pension (usually 25% of the fund value) and leaving the remaining fund invested until you chose to retire or take income from your pension. From 2010 you will have to be 55 to take Pension Release.
Even if you take benefits from your pension as young as age 50 you can still continue to work and contribute to your pension. This can be done immediately or at some point in the future when your finances are back under control.
Any new contributions will create an additional fund from which you can take more Tax Free cash and additional income. All contributions attract tax relief and can be paid as regular payments or as lump sums. Pensions are more flexible than you may have thought but seek qualified Independent Advice before committing yourself.
Pension Release is a great option for many but you must not lose sight of the fact that. You are essentially taking income today in exchange for forgoing income in the future. You must be fully aware of any hidden costs, and the financial implications of this action in terms of losses as well as the immediate gains.
You should be able to obtain Specialist Pensions Advice free of charge to advise you of your current position and possible options to take.
It should costs nothing to quickly find out how much you are entitled to before you decide whether to proceed. Your existing pension providers may be able to offer a Pension Release facility but it may be that to release the cash you have to transfer your funds. This could incur additional charges. You should ask about any charges and fees involved and have these confirmed in writing. To be treated fairly you should be offered a facility whereby the tax free cash you request is deducted gross from your fund before any charges are applied or fees calculated.
About the Author:
Hi my name is Roger Gordon, i hope you enjoyed my article, for further information about pension release, and other pension related matters go to website http://www.pensionlite.co.uk
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