Pension release can be the ideal solution for some of those who have a company or personal pension they have not yet started drawing on. However there are certain rules that must be borne in mind if you are considering releasing some cash from your pension find.
Firstly you must be aged 55 or over to be eligible to claim. Secondly you cannot opt for pension release on any pension you have already started to receive. Thus if you have started receiving an income from a particular pension scheme early, this makes the potential to choose pension release null and void. However if you have more than one pension scheme it may be possible to choose this option on another pension pot you have not yet started to draw from.
There is also a limit to the percentage you can take through this method. This is currently a maximum of 25%. You are however entitled to take a smaller percentage than this if you wish. Furthermore you do have the option to split the percentage. For example if you wish to take 15% as a tax-free lump sum now, you can do so while leaving the remaining 10% to claim when you retire. There is also the option to choose a regular income when using the pension release model.
To qualify for Pension release you must fulfill the three criteria imposed by the Government:
You must be between the 55 years and the age you qualify for retirement. The age you can retire is different for different people. You cannot take Pension Release under the age of 55 except in extreme circumastances.
You must have an eligeable Private, Personal, Company or Final Salary Pension that you are not already receiving any income from. It is not possible to release money from the state pension.
25% of the total value of your pension is the maximum you are able to release early. You do not have to take as much as 25% if you want to leave some of it for later, but you cannot take more.
If you meet all the criteria and you think pension release might be suitable for your own financial and personal situation, contact Capital & Income Solutions today. We offer a free initial consultation to help steer you towards the best and most financially sound retirement.