Cash For Your Pension: Need-to-knows

There are moments in one's life when you simply need cash. Whether it will be to rehab your house, to clear dues whose interest is too high or to buy a new car, the need is there. Among the financing options open to people aged 55 years and above is pension release. Both pension funds and companies specialising in pension release can offer you the opportunity to draw up to 25 per cent of your pension savings and can do so tax-free. It does sound like an enticing financing option since it entails no cash payback but what are the cons? After all, a well-informed decision accounts for advantages and disadvantages alike.

Pension pool dwindling

 

By cashing in a portion of your pension pool, you thereby reduce the size of the monthly instalments you are entitled to get upon retirement. Make sure you know the post-cash in size of your pension before the very exercise to avoid any unpleasant surprises. Opt for this type of financing only if you feel this amount is sufficient to ensure you a decent living.

 

 

Interest-related earnings on pension pool dwindling

 

If the pension fund to which you have entrusted your pension savings offers lucrative annuities, you will naturally lose the opportunity to maximise profit thereof. The rule is simple: the lower your pension base, the lower your earnings.

 

 

Cash release takes months

 

If you think of pension release as a way of getting instant cash, then you are wrong. The procedure takes at least several months and you have to choose it only if you can afford to wait.

Remember that you might sell your pension for cash even if you are under 55 years but most providers will allow you to do that only if health is in bad condition.

 

 

Providers

 

Pension Cash Now is the partner promising to make your life so easy. It will not burden you with credit checks, nor will exact that you meet an age requirement. It will also request no set up charges. Its only requirement is that your pension pool has at least £20,000 in stock. Start the pension cash-in process by filling out a simple form.

 

Age Partnership, for its part, offers both the pension release and equity release options. No matter what you prefer, you can make preliminary estimates of the money you will get by using its equity release calculator.

 

Grove Pension Release has been on this market for 25 years and has much to share in regard to pension release. Read the easy-to-read and comprehend texts which introduce you to the pension release concept and procedure before deciding whether this is the right financing option for you.

If you still have any doubts about cashing in your pension you might book a free consultation with expert advisor and get informed decision after that. 

The information on this page is designed to help you understand more and make more informed choices. We do not receive any commissions, instead we are funded from companies that we advertise on our website.

You may also want to read about: Pension Release