What is a Pension Release and how can it help me?
In desperate times we often resort to desperate measures and if you are one of the many thousands of people over age 50 and in a financial predicament as a result of the current UK market crisis you may be pleasantly surprised to discover that your pension fund may prove to be your salvation now, rather than in later years.
You are able to withdraw the Tax Free Cash and leave the remaining fund invested to produce your pension income until your planned retirement Yes, it's true, by using Pension Release you can access some of your pension benefits now in date. Pension Release is a method of taking some or all of the Tax Free Cash from your pension (usually 25% of the fund value) and leaving the remaining fund invested until you chose to retire or take income from your pension. From 2010 you will have to be 55 to take Pension Release.
It is possible that you may be unaware of the flexibility of pensions these days. If you withdraw your pension benefits at the age of 50 you are still permitted to work and carry on paying into a pension arrangement. This can be started at a later date when you feel more financially able to do so.
This new fund can be funded by lump sums or regular contributions, both of which qualify for tax relief. You will need to take qualified Independent Advice before making any firm commitment.
You may already be thinking what a great way to sort your problems but you have to understand that by taking a Pension Release you will forego part of your income later in your life - so it is not something to embark upon lightly. There could be hidden costs and you need to fully understand what you may loose and not just what you may gain.
You should be able to obtain Specialist Pensions Advice free of charge to advise you of your current position and possible options to take.
The initial investigation of your entitlements should not involve a cost and you should establish this before you proceed. Your current arrangement may have the facility to offer Pension Release, but it may be that you have to transfer the funds elsewhere to achieve this. This is likely to involve extra costs and you need to be aware of these before you confirm the transfer. You should be able to request that a gross deduction of the Tax Free Cash is made and any costs and charges are levied on the remainder.
You are able to withdraw the Tax Free Cash and leave the remaining fund invested to produce your pension income until your planned retirement Yes, it's true, by using Pension Release you can access some of your pension benefits now in date. Pension Release is a method of taking some or all of the Tax Free Cash from your pension (usually 25% of the fund value) and leaving the remaining fund invested until you chose to retire or take income from your pension. From 2010 you will have to be 55 to take Pension Release.
It is possible that you may be unaware of the flexibility of pensions these days. If you withdraw your pension benefits at the age of 50 you are still permitted to work and carry on paying into a pension arrangement. This can be started at a later date when you feel more financially able to do so.
This new fund can be funded by lump sums or regular contributions, both of which qualify for tax relief. You will need to take qualified Independent Advice before making any firm commitment.
You may already be thinking what a great way to sort your problems but you have to understand that by taking a Pension Release you will forego part of your income later in your life - so it is not something to embark upon lightly. There could be hidden costs and you need to fully understand what you may loose and not just what you may gain.
You should be able to obtain Specialist Pensions Advice free of charge to advise you of your current position and possible options to take.
The initial investigation of your entitlements should not involve a cost and you should establish this before you proceed. Your current arrangement may have the facility to offer Pension Release, but it may be that you have to transfer the funds elsewhere to achieve this. This is likely to involve extra costs and you need to be aware of these before you confirm the transfer. You should be able to request that a gross deduction of the Tax Free Cash is made and any costs and charges are levied on the remainder.
About the Author:
Thanks for reading my article, for pension, and related services go to website http://www.pensionlite.co.uk best regards Roger Gordon
posted by Credit Counseling at
5:33 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home