Is a Pensions Release the right option for you ?
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An element of tax free cash may be withdrawn now with the remaining funds staying in the fund until the desired retirement date. This form of partial withdrawal is known as Pension Release, which allows a portion or all the Tax Free Cash to be withdrawn from the fund (normally 25% of the total value of the fund) with the rest remaining until you opt to take Income from your pension or reach retirement.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 is a great option for many but you must not lose sight of the fact that. You are essentially taking income today in exchange for forgoing income in the future. You must be fully aware of any hidden costs, and the financial implications of this action in terms of losses as well as the immediate gains.
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.
An element of tax free cash may be withdrawn now with the remaining funds staying in the fund until the desired retirement date.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 is a great option for many but you must not lose sight of the fact that. You are essentially taking income today in exchange for forgoing income in the future. You must be fully aware of any hidden costs, and the financial implications of this action in terms of losses as well as the immediate gains.
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:
Hi my name is Roger Gordon, i hope you enjoyed my article, for further information about pension release, and other pension related matters go to website http://www.pensionlite.co.uk
posted by Debt Consolidation Loan at
7:47 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home