Guide to Pension Release
home insurance cover
What does Pension Release mean?
All non-state pension schemes have the option of taking up to 25% of the pension fund as a tax free lump sum upon retirement age.
However, if you are aged 55 years or over and have a sufficient amount in your pension fund it may be possible to unlock the pension fund early and access this tax free lump sum before you retire.
This is called pension release or pension unlocking.
Releasing funds from your pension early will reduce the income you get from your pension when you retire, pension release is not for everyone.
Everyone's pension schemes and circumstances are different so it's very important to take independent financial advice before considering a pension release.
If you take an early pension release, you can still continue to make additional/new contributions to your pension. These will attract tax relief and will be combined with the balance of your existing pension fund when you retire. You can continue to work after taking a pension release.
This guide explains how pension release schemes work, along with things to consider. We also provide helpful resources and links to experts who can give you advice on whether a pension release scheme is appropriate for you.
|© 2015 AskFinancially 2007 - 2015|