One of the most common questions we are asked is how much people are entitled to release from their pension fund. The simple answer is a maximum of 25% as a tax-free cash payment.
The actual cash amount will vary from person to person depending on how much is available in the individual’s pension fund. However it is wise to note that you should ideally only take the amount that you need. For example if you require a specific amount to pay off any outstanding debt prior to your retirement and you only need 10% of your pension pot to achieve this aim, you can leave the rest invested to draw on for an income in retirement.
Capital & Income Solutions provides an in-depth and completely independent advisory service for all our clients. Once we have carried out our free, no obligation pension assessment to determine your suitability for early pension release we would take steps to establish the value of your pension fund and provide you with an idea of your 25% tax free lump sum. We are authorised and regulated by the Financial Conduct Authority.
It may be tempting to take advantage of the entire 25% as a tax-free lump sum. However you should take proper independent financial advice prior to choosing pension release in your situation. C&IS can provide a free initial consultation to ensure you understand all the options available to you. Contact us for more information now.
You can usually release up to a maximum of 25% of your pension fund tax free. In some circumstances it is possible to draw down a one-off payment without having to continue with an ongoing regular income to release a little more of your pension early, although the extra money could incur income tax liability.
From April 2015 new regulations will come into effect which change the amount of Pension you are able to release in certain circumstance, for example allowing you to release all of your Defined Contribution (DC) pension benefits as a cash lump sum. Please contact us on 01132 774429 for more information on this or any of the changes made by announcements in the Chancellor's last Budget.
Contact Capital & Income Solutions today for professional no-obligation advice and your free initial consultation to determine exactly where you stand.