Pension Release

If you are 55 or over, you could release a tax-free lump sum from your pension with the help of our advisors. For many, this is a far more cost-effective option than incurring debt or continuing to service an existing loan.

Cash from 25% of your pension

Whether your pension is a personal plan or from an ex-employer, you could unlock up to 25% of its value tax-free. Many of our customers use it to:

• clear an existing loan or mortgage
• invest in new opportunities
• help members of their family
• avoid taking out a loan.

Pension release – is it the right option for me?

If you opt to release some of your pension now, you are likely to reduce the pension income you will receive when you retire. On balance, it is often more advisable to release cash from your pension now rather than take on the cost of any additional loans.

Our IFAs specialise in this period of your life and will look into your individual situation and advise accordingly. If you’ve been paying into a pension scheme for more than five years, we can help. Call 0845 600 6080 or email info@rbaifa.co.uk if you have a question or would like to receive advice.

Alternatively, please see four of our most frequently asked questions below.

• What are the advantages and disadvantages?
• How long does it take?
• Can I continue making contributions to my pension after I’ve released a proportion of the cash?
• Do I have to give up work to receive a lump sum from a pension release?

What are the advantages and disadvantages?

Advantages: You could unlock up to 25% of your pension and receive the cash tax free.
Disadvantages: You will be reducing your final pension fund by the percentage released and as a result, the payments you receive during retirement may decrease.

Although pension release is worth considering, it is not suitable for everyone. Our IFAs can help you weigh up the advantages and disadvantages of all your options.

How long does it take?

To some extent, timescales can depend on your pension company, so it is important not to rely on pension release as a quick fix for financial emergencies. However, once you have filled in our questionnaires so we can contact your pension company, we will do all the chasing on your behalf and will keep you informed at every stage of the process.

Can I continue making contributions to my pension after I’ve released a proportion of the cash?

Yes – contributions made after a pension release are treated in the same way as those made before and will qualify for tax relief. New contributions go back into your fund and replenish the pot, from which you will benefit when you retire.

Do I have to give up work to receive a lump sum from a pension release?

Not necessarily. You can continue to work as normal, but you need to note that it is impossible to release funds from your current employer’s pension scheme, if you are still eligible to make contributions.