Pension Release FAQ

Q. What are the criteria for applying for Pension Release?

A. You must be aged between 55 and 64. You must have a UK Pension (not state pension). You cannot be receiving benefits from the Pension already. It must not be your current employer’s occupational pension. You have a need for a cash lump sum.

Q. How much will I receive if I Cash In My Pension?

A. The amount you will receive is dependent on the size of fund in your Pension. In most cases 25% of the transfer value can be released as a Tax Free sum.

Q. What Tax Do I have to Pay on the cash sum from Pension Release

A. You do not have to pay any Tax on the Tax Free lump sum released. If you take the extra drawdown payment in the first year, depending on your circumstances you should note that HM Revenue & Customs views any sum you receive as part of your Income, this means that you might have to pay Income Tax on the sum. HM Revenue & Customs include Pension payments as part of your income when working out how much Tax is owed. This is standard procedure.

Q. Do I still have to pay my month premiums into the Pension Policy?

A. No, you will no longer be able to pay into the policy. Pension Release is a way of being able to take your money now as either a lump sum, income or a combination of the two.

Q. Am I able to continue working if I wish to take early benefits?

A. In most circumstances you are still able to continue working however this should be treated on a case by case basis. There are many people who are over retirement age, working and drawing State Pensions.

It should be noted that a UK pension is there to provide an income during retirement so Pension Release is only suitable for certain people and under certain circumstances. For these reasons Release should not be seen as an easy alternative to raising cash quickly.

If you think that Pension Release is a viable option for you then you can get started by filling in the form on the right.