Is pension release right for me?

It's a great temptation to release your money and or income from your pension, especially if you really feel that you need it. However you must bear in mind that releasing your pension means, quite naturally, that your income in retirement will probably be considerably less than if you waited until your normal retirement age.

This means that you will have less to live on when you retire, and as such pension unlocking is only suitable for a very limited number of people and circumstances.

Unlocking your pension will rarely be to your long term financial advantage. Therefore you should look at all the other options before you consider releasing your pension. You should ask yourself if you really need to raise extra cash? If so, could you borrow the money by way of a personal loan or remortgage? Do you have any savings or other assets you could use?

Your pension consultant will recommend the option that they consider is best for you having considered all the advantages and disadvantages, your objectives, circumstances and the other options you could use for raising the money. Just to remind you, there is no cost or obligation to you in our recommendation as to the most suitable option and how it will affect you now and in the future. Only if you go ahead and release your pension we will receive commission from the pension provider.

Do I have to pay tax on the money?

The lump sum payment is tax free. However any income you receive is viewed as part of your regular income by the HM Revenue and Customs, which means that you may have to pay income tax on it depending on your personal circumstances. However tax rules may change in the future.

Do I have to pay monthly premiums to the policy?

No, in fact you can't pay any more into it.

The purpose of this is for you to look at being able to take your money now as either a lump sum, income or a combination of both.

Can I continue to work whilst taking early benefits?

In most cases, yes.

You can draw on your pension once you reach 50 and continue to work. Many people continue to work even though they are drawing their State Pension and are over retirement age.

HM Revenue and Customs will include any pension payments you receive as part of your income when working out how much tax you owe. This is normal and will happen whether you access your pension now or later.

For any further questions please make an enquiry and a professional pension consultant will provide all the answers you need.