Release Cash by Pension Drawdown

Anyone who is between 55 and 77 years of age and has a private pension with sufficient funds is able to consider pension Drawdown as a way of unlocking some funds.

Funds could be used for a variety of reasons such as:

paying off a mortgage early

paying for university fees for a dependent

contributing towards a wedding

taking a holiday of a lifetime

to consolidate debt

One of the best ways to see if pension Drawdown could be of benefit to you is by sourcing an independent financial adviser who is specialises in pensions. They will be able to discuss your current finances and future requirements. By looking at how well your pension fund is performing they can advise you if pension Drawdown would be suitable. If you need help with finding an Independent Financial Adviser in your local area take a look at www.unbiased.co.uk.

People who offer pension advice are regulated by the FSA and the Chartered Insurance Institute. The regulatory bodies state the minimum requirement for any adviser who offers pension advice without supervision is to hold the Certificate in Financial Planning (1-5). It is definitely worth checking the FSA’s register to ensure the advice you are getting is from a qualified expert within this field.

Pension Drawdown is not a quick application, it can take a number of weeks to unlock a pension and once unlocked it can have a big impact on your future pension value. Therefore, it is advisable that you meet with a number of advisers and take time to decide who you feel most at ease with.

Any funds that you take out of the pension now, will have an impact later in life when you come to retire.

Alternatively, there are many companies who specialise in unlocking pension funds to enable pension Drawdown if this is a more preferable way of releasing your funds. These companies can be found easily on the Internet.

The amount to be drawn down from the pension fund is calculated by the Government Actuaries Department (GAD). It allows a value of between 0%-120% of the equivalent value of annuity that could have been purchased with the pension fund. This amount is recalculated at least every 5 years. Throughout the time of drawing down your pension you are able to continue making contributions, topping up your pension fund if desired as well as remaining in paid work.

Guide Contents

free pension drawdown advice:
submit our form below today:

name:*	tel no:*	email:*
house no:	postcode:*	date of birth:

by sumbitting this form you're agreeing to receive a call regarding your pension circumstances from Reid, Scott & Ross.