Pension Release: Release Your Cash Early
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Release My Pension Cash
Pension release is a viable option for people who are looking to release the cash within their pension safely and securely. Though the prospect can seem daunting, it is completely possible to release your pension cash quickly and safely knowing that you still have enough in your pot to retire comfortably. You could release your pension today and release the cash that is in your UK pension!
Why release your pension cash?
There are dozens of reasons why more and more people in the UK are choosing pension release once they hit the age of 55. The government’s freedom pension rules, which came into play in April 2015, now make it easier for hardworking individuals to release cash from their pension schemes much earlier than their expected retirement age – and this extra money can be useful for all kinds of reasons.
We also have option available to release your pension before 55
You could release the equity in your pension to:
- Clear off what’s left of your mortgage in order to own your home outright. It would certainly be a huge weight off your shoulders to know that your mortgage has been taken care of!
- Clear off any outstanding high-interest debts, leading to complete peace of mind that none of your future income will need to go towards making repayments. Hundreds of thousands of people like you have already released their pension for this reason.
- Pay for those much-needed home improvements. If your property is looking a little run-down and you’re keen to renovate, freeing up some cash by releasing a pension could be a viable way to breathe fresh life into your house, flat, bungalow or cottage.
- Pay for a once-in-a-lifetime holiday. You’re sure to have dreamt about cruising the Caribbean, a hiking experience in South America or an all-inclusive trip around Europe. Wherever you’d like to go, releasing your pension can turn your travel dreams into reality.
- Help out your children or grandchildren financially. Perhaps they’re getting married, or they are looking to buy their first home – either way, those you love could greatly benefit from some extra cash, and you can watch them flourish safe in the knowledge that you’ve contributed to their happiness by organising your pension release.
- Pay for your own parents to receive the best care. As they approach their later years, many people need an extra helping hand. Your cash could be used to help them continue to live as independently as possible whilst alleviating some of the strain on friends and family members.
- If you wish, you could even release a pension to place the funds into a different lucrative investment vehicle, such as property or a cash ISA.
Changes to the rules surrounding pension equity release
It’s no secret that we’re all living longer – which means that the age that we can expect to retire has increased over time, too. For this reason, many individuals were looking for a larger variety of ways to use their pension cash, and several years ago, the government listened to this patent demand for more flexibility.
Legislative changes announced in March 2014 opened up new possibilities for pension holders, allowing them to release thousands of pounds from their pension before they reach official retirement age as of April 2015.
This was good news for those who were keen to arrange a pension release at the age of 55 or over and free up some much-needed cash.
Before these changes came into play, individuals were able to release up to 25% of their total pension without paying any tax; the rest of the funds needed to be used to purchase an annuity (or a similar plan that could guarantee regular income past retirement). Now, however, the entire pension can be taken as a single lump sum, with the first 25% drawn tax-free and the remaining amount taxed at that person’s highest rate of income tax. The total amount of tax paid will depend upon how much income the person is receiving from other sources in any single tax year.
Can I release my pension early? Yes! You can release at any age
In short, yes, you can. That said, you need to be wary about con-artists who are taking advantage of the increasing elasticity in the UK’s pension laws in order to scam people out of their hard-earned savings. These less-than-scrupulous ‘pension experts’ have, unfortunately, tarnished our industry’s reputation by giving customers advice that has eventually lost to significant loss of income. This article from the Money Advice Service should give you a better idea of how to avoid pension scammers and what to do if you think you’ve been targeted by an ongoing scam.
You won’t find these charlatans here, however. At Sellpension.co.uk, our pension release service is legally-compliant and ethical. We only work with the most trustworthy pensions experts, who always offer useful advice that has the client’s individual needs at heart. We can’t guarantee that everyone shares our principles – but we do know that when you choose to speak to our team about releasing your pension, you’ll receive the best quality support for your unique circumstances.
Pension release for under 55s
You can contact us today to discover if you qualify to release your pension cash under the age of 55. Although this could be possible you may be faced with a tax bill of some sort, there are multiply pension options available to you and you could release as much as 25% that is tax free also….each pension provider is different and we would need to check which pension policy type you have and see how much cash you could release form your pension.
If you want to release your pension under 55 then please contact us as each case is different.
Having spent so many years building up your pension pot, you really don’t want to be making any big decisions off the cuff. It goes without saying that releasing some of the cash in your pension could have serious implications for your future financial stability, and you need to make sure that you have enough money left in your pension to ensure you are secure in later life.
If you’re certain that drawing money from your pension is the best way forward for you, our experts will talk you through the process of pension release and will provide a 100 per cent confidential pension review service. The advice and guidance that we offer is completely free of charge, with no obligation whatsoever. Get in touch with us today, and we’ll see if you are eligible for early release.
We have extensive knowledge of the releasing criteria of the UK’s major pension providers, including including Aegon, Aviva, Alliance Trust, AJ Bell, Hargreaves Lansdown, Nutmeg, Canada Life, Legal & General, Liverpool Victoria, Prudential, OldMutual and a whole host of others. We can even help you if you’re not sure who your pension is with, or if you even have a pension at all – researching what you already own is all part of our service.
If you think this is an option, or you’re still undecided and want some further information about how to release a pension, don’t hesitate to contact us.
Steps to Early Pension Release in the UK under 55
Pension release, otherwise known as pension unlocking, is the taking of money out of your pension pot(s) before you clock the age of 55. If you withdraw before 55, you will attract a huge bill from the tax man, which means that you might even end up losing all the money in your pension pot.
Due to changes that became effective in April 2015, you normally can’t be able to access your pension until you’ve reached 55. You can still access your pension before 55 and it’s not illegal. However, it is always recommended to not withdraw your pension early except you’re eligible to do so through the exceptions discussed later on. The reason is that government penalties and pension administrator charges might milk you dry.
This a fraudulent means of assuring people of early pension release (before the age of 55). These assurances are very false and you might end up footing large bills or with no retirement savings at all. People who fall for this scam are normally reached by phone, text or email. These scammers will then try to convince them to transfer parts of their pension to fake arrangements.
With pension liberation, you could lose more than £10,000 through taxes and fees. When you’re over 55, you can legally take a 25% lump sum from your pension and it is completely tax-free. When it comes to pension liberation, you attract a tax bill of 55% as well as your firm charging you up to 30%.
The rest of your pension money will probably be invested in risky, fraudulent and highly unregulated investment structures. These investment structures are usually based overseas and are hard to track. Due to this, you might even end up losing your whole pension if the investments hit the rocks.
Early pension release under age 55
It’s really not advisable to withdraw your pension before 55 except under specific circumstances. HM Revenue and Customs (HMRC) will usually hit you with a 55% tax bill for every sum you withdraw. For example, if you withdraw £1,000, the tax bill will be £550. This is because the company or third party helping you to conduct this process will charge you significantly and the HMRC sees this as an unauthorized payment.
By law, your pension provider is obligated to inform the HMRC of any withdrawal you make. The HMRC will leave no stone unturned in looking for you to settle the tax bill. You’re required to pay the tax and it doesn’t matter if:
• You were oblivious to the tax rules you violated.
• You decide to return the money to your pension pot.
• You have already settled the fees or charges of the company or third party involved.
• You have already exhausted the money.
Companies, firms or third parties that put this “pension unlocking” in place are not usually authorized by the Financial Conduct Authority (FCA). This means that if the plan goes awry, you will be left without any protection.
Withdrawing your pension via early pension release under 55
Circumstances are available for people who want to access their pension pots before they retire. We will discuss more about early pension release under 55; We’ll discuss them now.
1. Over 55
You have access to your pension pot if you’re over the age of 55 – even if you’re not yet retired. Any withdrawal of 25% will be deemed tax-free, but for over 25%, you will need to pay tax (at your normal tax rate, however). You should always think carefully before embarking on this, though. It is also important to have enough in your pension pot when you actually retire.
2. Under 55
Two situations will make this option available to you.
a) Serious Ailment
If you need to retire early due to a grave illness, your pension will become available to you. Concerning this, you aren’t required to do business with any third party. All you have to do is establish contact with your pension provider – they will explain how it works to you and check your eligibility. Tax bills won’t be as huge as the 55% one for withdrawing before 55. This withdrawal will be deemed an authorized payment from a pension pot and your pension provider’s charges will be significantly lower than that of a third party.
You might be eligible to access your entire pot tax-free if the following applies to you:
• You have less than a year to live.
• Your pension pot’s worth is less than the £1 million lifetime allowance.
b) Protected Retirement Date
If your pension plan has a protected retirement date, you can be able to access your money before you retire. It is important to note that this right should’ve been granted before 6th April 2006. A professional sportsperson (e.g. basketball player, footballer, Rugby player) is a perfect example of someone who might have a protected retirement age.
You don’t need a pension release company or any other third party to withdraw your pension for any of these two reasons. Your pension provider is capable enough to set everything up for you.
The Risks of Early Pension Release
A pension like the “final salary scheme” offers an income that is guaranteed for life. You will certainly lose these benefits if you decide to transfer out of this scheme and that might not serve you well in the long run.
You can also be the victim of a scam. Some of these scams can be appealing – one of them being the availability of a “loophole” to withdraw money from your pension before 55.
Accessing a pension before the time it actually kicks in isn’t usually a good option. No two persons are the same and what works for one might not work for the other.
What to Watch Out for
A website that tells you that you can access your pension before the age of 55 is usually not authorized by the FCA. Any advice that you get from there will be unregulated – meaning you won’t be protected if things go wrong.
Accessing your pension pot before the age of 55 is not usually recommended because of the high tax bill. However, for unique situations, you can be able to do so without the problem of tax.
Our early pension release team
We can help you to release your pension early. We can put you in touch with a IFA pension review expert to help you release your pension cash. To get started simply contact us via the form at the top of the website.Click Here To Get Started!