Pension Release

What is Pension Release?

Pension release in where an individual releases the money tied up in their pension fund, in the form of a cash lump sum.

Advantages of Pension Release

Some of the advantages of pension release include:

• Releasing your pension will generate a cash lump sum, which is available to spend now, hence you will not have to wait until you retire to enjoy the fruits of your labour

Disadvantages of Pension Release

Some of the disadvantages of pension release which you should consider before committing to such a scheme are:

• Releasing your future pension benefits early will reduce the amount you will receive in your retirement
• Pension release is likely to be suitable only for a limited range of consumers and circumstances which is why specialist advice is highly recommended.

Conditions to Qualify for Pension Release

To qualify for pension release in the UK:

• You must have a UK Pension Plan from which you are not currently taking benefits
• You must be over 55 years of age

How Much can I Release?

If you meet the above criteria, then you may be eligible to release up to 25% of the value of your pension fund as an immediate cash lump sum. The remainder of your pension fund may be available to take as a pension.