Pension Release Rules
Pension release rules can be complicated and there are a number of things you will need think about before you decide whether pension release is the right option for you.
What pension release rules and considerations should I take into account?
- Under current pension release rules you may only take pension release after the age of 55 in the UK.
- Schemes which offer 'release' of funds before 55 are usually pension loan schemes which exploit a loophole in pension rules. However these schemes may come with significant risks and should be treated with caution.
- You will usually need to have between £15,000 and £100,000 in your pension fund to qualify.
- Taking cash from your pension may have an effect on any means tested benefits you may be claiming.
- Pension release will have a damaging effect on your potential retirement income. As well as reducing you pension pot, taking cash out of you pension fund early will lose any investment benefits that the sum may have accrued.
- A reduced retirement income will mean a less financially comfortable retirement, and could make it more likely that you will face financial difficulty in later years.
- Pension release may be most suitable for those in urgent need of funds without any other means of acquiring them.
For expert pension advice, or to discuss whether pension release may be the right option for you, speak to a member of an independent pension advice team. Receive a free initial consultation.
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