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Why pension release?

The facts you need when it comes to withdrawing money early from your pot

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Pension release simply means withdrawing money from your retirement savings. As long as you are 55 or over and have an eligible scheme then current government rules mean you can withdraw as much money as you like from your pension pot. The first 25% withdrawn is usually tax free. After that, any withdrawals are subject to income tax at your marginal rate.

Pension release is a big decision, though, as this is money you have saved up for when you say goodbye to the 9 to 5. It isn’t right for everyone because it will leave you worse off in retirement. That’s why it makes sense to talk with a financial adviser first.

What schemes are eligible for
pension release?

Private pensions
Company pensions
Old company and personal pensions
The State Pension
Unfunded pensions

Couple smiling at mobile phone | Pension tax-free cash

Tax treatment depends on your circumstances and is subject to change.

Is pension release right for you?

Current rules mean you have more freedom and flexibility than ever before when it comes to how and when you access your pension savings. And in our experience, some of the most common reasons for Pension Access clients taking money early from their pension are¹:

If possible, it makes sense to keep your pension savings invested until you retire. That way you should have more financial freedom for the next chapter in your life. Everyone’s circumstances are different, though. That’s why you should have a chat with a financial adviser before you make any decisions.

How it works in 3 easy steps

With our no obligation pension check discover how much you could release from your pension and if it’s the right thing for you to do.

Your permission

Complete and return a simple form giving us your permission to check your pension.

We analyse

Our team gathers and analyses all the information we need about you and your pension.

Your decision

We’ll send you a report, clearly stating what we think you should do. The choice is then yours.

Our initial investigation into your pension will not cost you a penny. If you decide to make a change to your pension, including releasing money from it, we will take care of everything for you. Any advice charges are confirmed in writing before you have to make a decision to proceed. This means you can walk away better informed with nothing to pay.

Pension release and final salary schemes

A final salary scheme is usually a company pension that promises to pay you a guaranteed income for life from a set age. Unlike a standard defined contribution pension, the income you receive is not dependent on how the investments perform. These types of pensions are increasingly rare and extremely valuable. In many cases you can release money early from these types of schemes; although, if it is worth £30,000 or more, you have to seek financial advice before you can do so. The default position is to leave these types of pension as they are. This is because by releasing money early, you would be giving up that valuable guaranteed income for life. As we’ve said before, everyone’s circumstances are different, though.

What are unfunded pension schemes?

If you work for the NHS, the military, the emergency services, or the civil service, there is a good chance your pension is unfunded. And if you have an unfunded scheme, you cannot take money from it early. The good news is, like final salary schemes, these types of pension promise to pay you a guaranteed income for life from a set age. This is an extremely valuable pension benefit to have.

Son with arm round his father | 25% tax-free pension cash

¹Pension Access statistics: primary reasons for clients taking tax-free cash: up to 4th Nov 2020

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Pension Access is a trading name of Harbour Rock Capital Limited which is registered in England & Wales as a Limited Company, No. 10290349. Authorised and regulated by the Financial Conduct Authority, No. 754580. Registered Offices: Affinity House, Beaufort Court, Sir Thomas Longley Road, Rochester, Kent, ME2 4FD. Telephone: 0800 009 3388. Email: pensionaccess@harbourrockcapital.co.uk

Why pension release?

What schemes are eligible for
pension release?

Is pension release right for you?