subject: Can I Cash In My Pension ? [print this page] Whilst for the vast majority of people holding a U.K. personal or company pension, it is not possible to cash in a pension early, for a small minority, those who are aged 55 or older, it could be possible to unlock up to 25% of their pension, or pensions, as a cash lump sum, free of tax. By releasing money in this way you are not forced to purchase an annuity and take a retirement income from your pension, you don't have to stop working and you can continue to pay into your pension plan which will profit from the governments generous tax allowances. You may find an injection of cash extremely useful to you but you do need to think very carefully about the consequences for your future financial security.
Taking money out of your pension before you retire will reduce the value of your pension plan and will consequently reduce the amount of income that you will receive on your retirement. It is therefore important to give careful consideration before starting to release cash from your pension. Any decrease in your future retirement income could affect both yourself and your family and in view of this pension release is only appropriate for a limited number of people and circumstances. Before embarking on pension release you need to decide whether you, and any dependents you may have, will have enough money to survive on throughout your retirement.
There are companies in the U.K. that specialise in pension release and they will be able to help you through the process. These companies are monitored and regulated by the Financial Services Authority (FSA), the government's financial watchdog, set up to protect the rights of the consumer. They will take a detailed look at your current pension provision as well as your personal situation and circumstances and your attitude to investment risk. They will be able to advise you of the disadvantages, as well as any advantages, of pension release and should you decide to go ahead with it, they will be able to act quickly and efficiently to release your money for you, often within a matter of weeks.
by: S.O.E. Pensions
welcome to Insurances.net (https://www.insurances.net)
