Pension Release now only available from age 55

by admin on March 28, 2010

If you over 55 with money in a personal or old company pension scheme?  Then you could be eligible for pension release and receive a tax-free cash lump sum and if you require an income.

The rules changed on 6th April 2010 and now you need to be age 55 or over to be eligible for pension release.

What is Pension Release?

Pension release allows you to take a maximum of 25% of your pension fund as tax free cash. The residual fund can be left invested and you can take an income if you need one. If you do not need an income then you can leave it invested until you do.

You can use our pension release calculator to find out how much income you could take from the residual pension fund.

You should always seek independent Financial Advice before you consider pension release.

Pension Release is only suitable for a very limited number of people and should be only taken as a last resort. Taking money from your pension now will reduce the amount of income available to you come retirement. This service applies to UK pensions only.

Retirement Solutions Limited are expert at pension release and they can provide quotes and advice for you. Call them on 0800 043 6701.

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Group SIPPs confirmed as acceptable for auto-enrolment requirements.

by admin on November 25, 2009

Use of group Sipps in the workplace post-2012 has been confirmed as acceptable for employers wanting to meet their auto-enrolment requirements, provided a default is offered and charges are not too high.

The group Sipp market is set to grow as employees look for more cost-effective ways to comply with company shareholding requirements.

Many companies required senior staff to hold substantial shareholdings to ensure that their financial interests were aligned with the company’s performance.

A director who is required to own £100,000 worth of shares would effectively only need to find £60,000 to hold these through a Sipp [because of the 40% tax bracket].

Once these shares are held within the Sipp the dividends are not subject to income tax and, if the individual moves on, they can sell their shares within the Sipp without having to pay capital gains tax.

The transition from defined benefit to defined contribution pension schemes could boost the appeal of group Sipps.

A lot of senior executives are in DC arrangements and quite often are not getting any preferential employer contributions, in which case there are going to be a lot of senior people who aren’t going to be affected by the lifetime allowance. And for those, this does become very tax-efficient,’

Previously Sipps did not allow protected rights. This has changed and SIPPs  allow for both protected and additional rights.

For advice on Group SIPPs call 0800 043 0725

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If I die, what happens to my annuity?

November 21, 2009

When you buy an annuity you effectively hand over your pension pot to the annuity provider (usually an insurance company).
In return it promises to pay you an income for the rest of your life. If you die ‘too soon’ then what happens, entirely depends upon the type of the annuity that you have purchased.
Some annuities [...]

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Pension Release advice in Norfolk

November 20, 2009

If you are one of the many hundreds of people that are looking for advice on pension release each day and you live in the Norfolk area then we can recommend an Independent Financial Adviser in Norfolk, Norfolk Financial Services.
The proprieter Mark Shubrook has many years experience and has worked for Organisations such as Aviva [...]

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Get Early Retirement Advice…

November 12, 2009

Although you can retire at any age, you can only claim your State Pension when you reach State Pension age. State Pension age is 65 if you’re a man and 60 if you’re a woman born on or before 5 April 1950. The State Pension age for women born on or after 6 April 1950 [...]

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Pension Release Calculator Do you Qualify?

October 26, 2009

Pension Release involves you taking a Tax-Free lump sum from your pension. This lump sum is often referred to as Pension Commencement Lump Sum.
To qualify for Pension Release you need to be over aged 50
Be aware that from 2010 this will change to age 55 so if you are serious about investigating whether Pension Release [...]

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