Release Cash From Your UK Pension By Pension Release
If you have a UK private or personal pension, then it is possible to release money from it at an earlier point before you reach retirement. You need to be aged between 55 & 64 as well as having a UK personal or private pension, that you are not receiving from. It cannot be the state pension. If you meet the criteria, then you are able to get twenty five percent as a Tax-free lump sum early. This can be used for whatever you like and you do not need to purchase an annuity. You are alo able to carry on putting money into the fund and therefore benefit from the Tax efficient point of view.
Pension Release is an area of finance that is controlled quite rigourously by the Financial Services Authority. For this reason it’s imperative that you take the advice of a professional financial advisor before embarking on pension release. There are specialist companies that deal with this area of finances and the advice that you get should be unbiased and your adviser should put you under no pressure regarding taking pension release. The plain fact is that releasing cash from your pension early is not a good idea in most circumstances. Your financial advisor will tell you what your options are and what the implications are of releasing the money early.
By filling out a get started form the pension release, you are allowing your financial advisor to gather information about your pension from your pension company. Once your financial adviser has this information and you have allowed him access to the information, they can complete all of the stages by return of post. They can also chase all of the companies involved in order to process this as quickly as possible. In some cases it is possible to get your tax-free cash in as little as 20 working days.
The FSA (financial services authority) scrutinise companies dealing in pension release very carefully. The companies that specialise in pension release updates follow the rules carefully and have to make sure that potential clients only get unbiased information. The FSA make sure that customers interests are put first and that they have been advised correctly.
Pension release are is viewed by the FSA is being high risk strategy to raise money. You should only consider pension release. If all of your other financial avenues have been looked into, or are exhausted. You should only consider pension release as a last resort. It is only the right thing for some people to do under certain circumstances. Take the advice of a professional, there are no obligations and you should not be pushed into this by a salesman.