There are also different types of pension plans, and there are different rates depending on how much you earn and the amount of taxes you pay. For example, you have the option of a private pension, or even a company pension. This means that your company adds a specific amount towards your pension. Once your pension money is invested and it is time for retirement, all the accumulated money is then used to buy an annuity. In effect, this sets an income for the rest of your life. The primary factors that determine the amount of this eventual lifelong retirement income are your age when you began a pension plan, how much you invested and how the money was invested.

UK pension holders are well advised to keep their old company pension fund or personal pension fund untouched until they retire at age 60 or 65 so that they get the maximum amount of earnings or returns from their investment in such pension funds. However, there will be some specific instances where you may consider pension release and draw a portion or segment of the cash sum tax free even before your retire.

UK personal pension funds and old company pension funds can be used as source of extra cash or income prior to retirement age of either 60 or 65 through pension release. As such, UK pension holders should consider their pension as some form of savings fund which can be used to address specific liquidity problems.

You can seriously consider pension release if you intend to settle some existing loans by using a portion of your personal pension or old Company pension. However, your final decision to take out such tax free lump sum cash or income through pension release will be dependent on the potential income that could have been generated if such funds remain intact and stay as part of your pension fund.

UK pension holders should carefully weigh the cost-implications of their decision to tap part of their pension funds through early pension release and settle or repay their loans. In situations where the interest of such existing loans are higher than the potential income that can be generated if the same funds remain invested then it doesn’t require the expertise of an accountant or financial analyst for you to know that you are better off opting for pension release to generate the funds needed to settle such loans.

UK pension holders must always look at the potential yield of their investments, and these include their personal pension funds or old company pension funds, when it comes to financial planning. For instance, if you are holding pension funds with guaranteed annuity rate, then it is but logical that you base your decision whether to opt for pension release or not on the expected income that you can generate from such investment.

PensionRelease.org will can put you in touch with an advisor who will perform a free investigation of your pension to see if Pension Release is the right option for you to consider

And remember, you will Never be under any pressure -  we will only get paid a commisison if you decided to release your pension.

Many people like to tap into the payments they have made over the years towards their pensions. By using an early pension release you are able to receive a lump sum, tax free against the value of your pension.

We are able to make all of the arrangements that are needed for this. We liaise with you from the outset; after you have completed the online pension release application we then contact you within 24 hours and plan the best possible pension release plan for you to consider. We will provide you with an easy to understand, clear and concise report detailing what is the best option and how much tax free cash you can get.

You can then use the money as you wish. Simple, secure tax free online pension release unlocked!

If you possess a frozen company pension or a personal pension scheme and you are at least 55 years of age, then you may seriously consider “unlocking” your pension fund to release some cash or reinvest a portion of the fund in other investment options with higher margins. In fact, you can draw as much as 50% of your pension fund if the fund value is at least £15,000 and your age is at least 55.

Pension Release Options

Based on the pension type, you can choose between two pension release options:

• Lump Sum (Tax Free) – This pension release option allows you take out up to a maximum of 25% of the value of your person fund as a single one-time cash release. Under this option, you may also initially take out a portion of the 25% value of your pension fund and schedule the release of the remaining balance of that portion of your pension fund at a later date or when you finally retire.
• Regular Taxable Income – This pension release option allows you to receive cash payments by investing a portion of your fund or by purchasing annuity.

Risk Implications and Other Considerations

Pension release has various risk implications, and you need to carefully assess your decision and verify whether such option is financially viable for your unique condition or not. For instance, your fund value must have breached the £15,000-mark before you can seriously consider this scheme. Further, you must be able to understand everything about time value of money.  When you opt to utilize your pension fund, which is an unearned income, before your retirement age, you are in effect reducing the realizable income from your pension scheme.

Even with pension release, you can still maintain your regular contributions and this will give you the opportunity to enjoy tax incentives while adding on the value of your pension fund and your realizable income when you finally reach your retirement age. In addition to this, you can still maintain your gainful employment even after you take up any of the two pension release options.

Each of us has a unique circumstances and pension scheme and it is extremely important that we carefully assess our options and seek professional advice before we make our final decision. At the end of the day, your decision will have to be based on the benefits that you will gain when you opt to take out a portion of your pension fund before you retire. The gains must outweigh the cost of such scheme and greater than the benefits that you would have gained from your foregone alternatives.