Pension Release

What is Pension Release?

Pension release involves releasing the cash tied up in your pension fund. Many people may have accumulated thousands of piunds in their pension fund, from years fo pension contributions and fund growth. If you meet the conditions necessary for pension release below, then you may be able to release this money now.

Conditions for Pension Release

To be eligible for pension release, you must meet the following conditions:

• Aged 55 years or older
• Have money in a pension scheme which you are not currently receiving money from

Advantages of Pension Release

There are a number of advantages to releasing your pension early, rather than waiting until reitrement, these are some of the benefits:

• Eliminates the risk that the value fot he pension fund will fall between now and your retirement
• Immediate cash lump sum may be available, which can be used for any purpose

Disadvantages of Pension Release

There are however a number of disadvantages associated with releasing your pension early. The main disadvantages are:

• Your pension in retirement will be substantially reduced, and this may therefore adversely affect your quality of life in retirement.
• The amount you can release tax free is limited to 25% of the total pension fund. Any amounts in excess of this will be taxable.

The Pension Release Process

The first step in the pension release process is to contact a pensions expert, who can explain the advantages and disadvantages of pension release schemes more fully, and can recommend specific schemes for your circumstances.