The term “pension release” refers to the process by which an individual who wishes to unlock their pension, does so, either by themselves or by means of a pension release facilitator.
“Unlock Their Pension?”
Here is the scenario: the person interested in releasing their pension has a pot of money that is locked into a pension, in order to access that money through conventional means (which is what we will be describing today as “pension release”) they first have to fulfill one of two very important criteria (legally).
1/ They must either be over the age of 55.
2/ They must be in ill/bad health.
And the individual over 55 basically either goes through the process themselves or works with a pension release facilitator whom may also present options for them in case they wish to release their pension in it’s entirety, often called “SIPPS”
What Are SIPPS?
The term SIPP means: “Self invested personal pension” and that is exactly what it is, it is an option for investment that could be regarded as advantageous to the investor due to the fact that if they re-invest the remaining 75% of their pension, they can avoid the hefty 55% tax payable if they decided to unlock their pension and receive the money in its entirety.
It is described as “Self-Invested” because ultimately the clients/investors themselves have the last word on whether or not the investment takes place, and this is their decision and their decision alone.
Important: Don’t allow anyone to push you into a decision regards investments for your future.
It is the responsibility of the investor to assess the risk and reward of each and every investment opportunity they are presented with when it comes to SIPPs.
This is a decision that is completely up to the person with the pension, they will have the best information about their own personal circumstances and their prospects for the future.
If you wish you can seek out the advice of an IFA (independent financial advisor) who may be able to help you in what to do best (however this will cost money and can be expensive), alternatively there is the citizens’ advice bureau.
Alternatively you can get in touch with us for a pension review, an assessment of the situation, and to be presented with some options for releasing your pension and some investments to make the process as tax efficient as possible, should that be of interest to you.
We do not provide financial advice, we simply refer you through to pensions experts who can present information and options for people looking to unlock their funds for whatever purpose.
We can handle the paperwork and the processing and manage the process on your behalf, facilitating your release and helping you avoid excessively high tax rates and other undesirable by products of pension withdrawal.
To get your hands on a tax free lump sum, get in touch on the homepage and request a free pension review to begin the process.