What is Pension Release?

Pension release or unlocking is where an individual over the age of 55 accesses their tax free cash (otherwise known as pension commencement lump sum) from their pensions. This lump sum is normally 25% of the entire pension fund although you do not have to take it all. On top of the lump sum you can also take a regular or irregular income depending on your circumstances. Our advisers will be delighted to discuss your objectives in more detail.

If you are over the age of 55 and have an individual personal pension, group personal pension, stakeholder or employers occupational pension (even if you are still a member) it may be possible to access your lump sum. Even if the retirement age of the pension/scheme is later than your current age. The only requirement to access the lump sum is you are over the age of 55.

There is no need to access all of your pensions, where you hold more than one you can access the lump sum from just one of them or a proportion of it. For clients who hold a variety of pensions it is may be advantageous to combine the pensions and our advisers will explain all your options after assessing if unlocking your pension is suitable for your circumstances.

75% of the pension fund will still remain. This fund can continue to be invested and/or may provide you with an income.

Our qualified advisers will be delighted to run through your circumstances and requirements.
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How much can I Release?

Under pension legislation you are entitled to 25% of your pension assets if you are over the age of 55 as a tax free lump sum. It is not necessary to take the full amount and our advisers will explain your options. This 25% relates to each one of the pensions that you hold and you can access the lump sum from one pension and not another.

For example, if you hold two pensions, one of which has a value of £100,000 and the other of a value of £150,000 you can access £25,000 from the £100,000 fund without affecting the other pension plan. If required and appropriate you could access a total of £62,500 from these pension arrangements (£25,000 from the £100,000 pension and £37,500 from the £150,000 pension). You can do this even if you are still working or contributing to pensions.

As well as the tax free lump sum you will become eligible for a regular income from your pension. This income will vary according to the size of your pension plan, age, health and family circumstances. If you wish you can defer this income until you actually retire.

Our experienced team will talk you through the income options and whether it is advisable to take the income or defer to a later date.

Please contact one of our qualified advisers to find out exactly how much you can release.
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Our service is only relevant to pensions held within the UK. Removing tax free cash early from a retirement fund will almost certainly reduce your pension income in retirement. Remember it is only suitable for a limited number of people.