Compare Pensions Release Companies
How you can release your pension
Sometimes it is possible to unlock your pension unlocking, so that you can enjoy some of the benefits before your retirement. By releasing your pension, you receive a tax-free lump sum and/or income early from your retirement. To apply for pension release you should usually be between 55 and 62 with a personal pension or company pension that you are not receiving income from. Pension releasing is more and more common in the UK and now there are even specialist companies that deal specifically with this area of pensions.
How much will it cost to release your pension?
This depends on the company you use to help you release your pension. You might be subject to costs from your pension provider, as a penalty for accessing your pension early. Most pension release companies quote set-up fees and commission, and these will vary. Take your time and compare different services before going with one company.
Some companies will only be able to quote fees and charges after they have investigated your personal case and pension scheme. They will usually then be able to prepare you with a report which details any fees incurred.
How Much Money Can I Receive?
The amount you receive depends on the pension scheme you have in place. When you apply for a pension release, the company you use will go through your pension plan to work out how much you could receive. Remember that by releasing your pension, you could reduce the amount of income you receive when you reach retirement.
What are the advantages of Pension Release?
Pension release allows you to access some of your hard-earned pension early. You can enjoy the benefits of the pension you have built up over many years that bit earlier than you might if it were still locked away. If you fall into a situation where you are desperate to raise extra cash before you reach retirement, you can do so by releasing your pension. However, it is not recommended to think of pension release as an 'easy option' for raising money.
What are the Disadvantages of Pension Release?
Before you consider releasing your pension, remember that by doing so you could reduce the income you receive when you retire. By taking a pension release you are removing some of the pension money that is being built up. Pension release is therefore not suitable for everyone and you should think carefully about whether it is really worth doing this. It is generally highly recommended to seek specialist independent financial advice before taking action to release your pension.
How to compare pension release companies?
Watch out for companies that say they are able to unlock your pension scheme before the age of 55. Many of these schemes are illegal, have hefty fees and could cost you a large amount. Think carefully before you take your pension benefits early and ensure you do your research. Pay particular attention to the terms and conditions and any fees that you could incur.
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