Could Pension Release Revive your Finances?

Personal Finance

Could Pension Release Revive your Finances?

Could Pension Release Revive your Finances?

PDF

Print

E-mail

Written by Roger Gordon

Sunday, 23 November 2008 16:32

In desperate times we often resort to desperate measures and if you are one of the many thousands of people over age 50 and in a financial predicament as a result of the current UK market crisis you may be pleasantly surprised to discover that your pension fund may prove to be your salvation now, rather than in later years.

by RogerGordon

In desperate times we often resort to desperate measures and if you are one of the many thousands of people over age 50 and in a financial predicament as a result of the current UK market crisis you may be pleasantly surprised to discover that your pension fund may prove to be your salvation now, rather than in later years.

An element of tax free cash may be withdrawn now with the remaining funds staying in the fund until the desired retirement date. This form of partial withdrawal is known as Pension Release, which allows a portion or all the Tax Free Cash to be withdrawn from the fund (normally 25% of the total value of the fund) with the rest remaining until you opt to take Income from your pension or reach retirement. This arrangement changes in 2010 when the minimum age to take pension release will be raised to 55

Even if you take benefits from your pension as young as age 50 you can still continue to work and contribute to your pension. This can be done immediately or at some point in the future when your finances are back under control.

Any new contributions will create an additional fund from which you can take more Tax Free cash and additional income. All contributions attract tax relief and can be paid as regular payments or as lump sums. Pensions are more flexible than you may have thought but seek qualified Independent Advice before committing yourself.

Pension Release may seem like the ideal solution to your financial problems. You need to be fully aware that this will reduce a portion of your personal income in later life. Consequently you need to be consider any hidden costs and the potential loses and gains involved before you take such an important financial decision.

You should be able to obtain Specialist Pensions Advice free of charge to advise you of your current position and possible options to take.

In many cases your existing pension provider will have the facility for a Pension Release. If this is not possible it will be necessary to transfer your benefits to another arrangement. This is likely to involve some costs and you need to be fully aware of these before confirming. You should push to get the Tax Free cash element deducted before any costs and charges are applied.

About the Author:

Thanks for reading my article, for pension transfer, and other pension related services go to website http://www.pensionlite.co.uk

Kindly provided by LJ-Marketing.dk
You are welcome to use this article on your own website, if you include the link just before this text.

Members : 1254
Content : 2297
Web Links : 1
Content View Hits : 310931