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An element of tax free cash may be withdrawn now with the remaining funds staying in the fund until the desired retirement date. This form of partial withdrawal is known as Pension Release, which allows a portion or all the Tax Free Cash to be withdrawn from the fund (normally 25% of the total value of the fund) with the rest remaining until you opt to take Income from your pension or reach retirement.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.
This new fund can be funded by lump sums or regular contributions, both of which qualify for tax relief. You will need to take qualified Independent Advice before making any firm commitment.
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.
There are a number of Independent Pension Advisers who are willing to provide free Specialist Pensions Advice. They will be able to evaluate your current pensions position and give you advice as to your potential options.
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. - 15224
An element of tax free cash may be withdrawn now with the remaining funds staying in the fund until the desired retirement date. This form of partial withdrawal is known as Pension Release, which allows a portion or all the Tax Free Cash to be withdrawn from the fund (normally 25% of the total value of the fund) with the rest remaining until you opt to take Income from your pension or reach retirement.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.
This new fund can be funded by lump sums or regular contributions, both of which qualify for tax relief. You will need to take qualified Independent Advice before making any firm commitment.
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.
There are a number of Independent Pension Advisers who are willing to provide free Specialist Pensions Advice. They will be able to evaluate your current pensions position and give you advice as to your potential options.
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. - 15224
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Thanks for reading my article, for pension drawdown, and other pension related advice go to website http://www.pensionlite.co.uk
