Pension Release is a term applied to the process on unlocking funds from a Pension scheme.
If you are over 50 and have money tied up in a pension to which you no longer contribute it is often a tempting idea to release these funds as you will be able t o make better use of them now.
Pension Release ( or Pension Unlocking) is a financial process by which you can apply for all or part of the funds in the policy.
It should be noted, however, that, often you will end up with less money than you would if you waited until the policy to mature.
A company pension release or personal pension release can offer the funds almost immediatley although you will have less money to live on upon reaching retirement age and policy maturation.
It is, therefor recommended that, if you are interested in pension release you consult with an impartial financial advisor ( FSA accredited ) before making any decisions which could affect your long term financial future.
Pension Release Information
Pension Release is a process available in the UK to those over the age of 50 who have funds locked up in pension schemes which would not normally be available to them until retirement/ maturation of the policy.
Grove FP are an independent financial services company which has been set up to allow anyone considering ‘cashing in their pension’ to have a completely clear picture of the process, the choices available and the considerations which must be taken into account.
This is extremely important as in many cases accessing this money early, quite like withdrawing from a high interest deposit account, can mean that the total sum obtained is considerably less than that which would have been paid upon retirement age.
However, there are many cases where unlocking a pension scheme prior to retirement can make funds available to the policy holder’s benefit; thus allowing one to make use of the money immediately for a special purpose or occasion. Certainly having money locked up and seemingly inaccessible in a pension scheme can be a major irritant.
Done properly and with sound financial advice it is possible to take out a lump sum tax free – up to 25% – or to choose to take payment via annuities.