Questions about Pension Release

In order for Pension Release to be viable, you must first satisfy a number of criteria:

  • You must be aged 55 or over

  • You must have pension benefits other than your State Pension

  • You cannot be in receipt of these pension benefits already

  • You pension benefits cannot relate to your current employer

If you meet these criteria, then Pension Release may be an option for you. However, taking your pension early may have significant consequences for you, both now and in the future.

 

Your pension is designed to provide you with benefits when you retire. Releasing your pension to obtain benefits early will reduce your retirement income, and may also mean that you are giving up valuable guaranteed benefits in the future.

 

Pension Release is therefore unsuitable for most people and circumstances, and should not be seen as an easy option for raising cash. It is vital that you seek expert advice before considering taking your pension benefits early.

 

In order to assist you in making the right decision, our professional and impartial team will provide you with all of the information and support that you need.

 

Our Consultant will identify suitable alternative ways of meeting your financial objectives where appropriate, including a consideration of loans, mortgages, existing investments, State Benefits, and restructuring of any existing debts.

 

If there is an alternative method of meeting your objectives which offers better long-term value we will recommend this, and will aim to put you in contact with an organisation that can help. We have detailed a number of organisations that may be able to provide such assistance in our guide to useful contacts.

 

Only when these alternatives have been investigated can accessing pension benefits be considered suitable. 

We will:

  • Identify suitable alternative ways of meeting your financial objectives where appropriate, including a consideration of loans, mortgages, existing investments, State Benefits, and restructuring of any existing debts
  • Determine what your financial needs in retirement will be  
  • Tell you how much income you can expect to receive from your pension, whether you choose to access it or not  
  • Consider your current and potential entitlement to State Benefits, and how these could be affected by choosing to access your pension 
  • Analyse your overall income in retirement, taking into account any entitlement to State Benefits 
  • Compare your expected income against your needs and provide advice on how to meet any shortfall 
  • Tell you how your overall retirement income will be affected by accessing your pension

Without any obligation on your part we will:

  • Request all the necessary information we need from your pension providers;
  • Provide you with guides and information to help you to understand potential alternatives;

If we can help you we will arrange an appointment with one of our Qualified Pension Advisers, who will: 

  • Establish your financial circumstances and personal objectives
  • Carry out an analysis of your retirement provision & discuss any other alternatives you might have;
  • Conduct an analysis of your pensions to establish the options that are available to you and provide you with a copy of this in writing;
  • Discuss the results of our analysis with you on the telephone and provide further information where appropriate.
Any further work we undertake on your behalf will attract a charge for our services.
 
Following our initial consultation (without charge) we will tell you what the cost of our service will be before they are due; depending on the options available to you we offer a number of ways for you to pay our charges, they are:
  • By fee directly either via cheque payable directly or as a deduction from your lump sum, or
  • By fee paid for via your pension provider, or
  • By using a combination of the methods above
Rest assured, you will know what our charges will be before you make any decision to commit to a transaction or chargeable service and there is no additional cost to you for using a means of distance communication (i.e. by post or telephone).
 
Call us now for an explanation of our charges.

You may be able to meet your objectives without using your pension benefits. As part of our analysis we will consider alternatives such as loans, mortgages, existing investments and restructuring of existing debts.

We cannot provide exact timescales as we are reliant upon pension companies to provide the information we require. Pensions can be complex and this is reflected in the time it takes to release pension benefits. In some cases this may take several months, but rest assured that our experienced specialist team will be in regular contact with you and your pension company to ensure that everything is progressing as it should be. We will keep you fully updated throughout.

Pension Products

You have the right to cancel any new pension arrangement(s) and you will receive a 'Cancellation Notice'. This allows you a period of reflection during which you may decide to withdraw from the agreement within the specified period of up to thirty days. Where applicable the pensions provider will confirm the specific period. 

Please note that transfers from occupational schemes cannot normally be reinstated if a right to cancel is exercised relating to the receiving contract. 

If you cancel a single premium contract, (for example by way of pension transfer), you may be liable for any loss you might reasonably incur in cancelling it which is caused by market movements. This means that, in certain circumstances, you might not get back the full amount you invested if you cancel the policy. 

Our Client Agreement

If you are dealing with us without meeting a representative of Retirement Direct Limited face to face, you may have the right to cancel this Client Agreement after you have entered into it. You will be informed by your adviser if this applies to you.

If you do have the right to cancel this client agreement you must exercise this right within the period of 14 days, starting the day after this client agreement is concluded, which is when you sign it and return it to us.

You may exercise your right to cancel (where applicable) by notifying us by post, email (to customer.services@retirementdirect.co.uk) or fax to 01785 339 022.

If you choose to cancel this client agreement during the cancellation period, and we have already commenced work on your behalf at your request, we may charge you for any work carried out prior to cancellation in accordance with the section headed “Our fees” above.

The lump sum is normally payable free of tax. Any income taken from your pension would be taxable at your normal rate. Basic rate income tax would be payable and normally be deducted by the pension provider at source.

No. We can release pension benefits from your personal pension, or any old company pensions while you are still in employment. However, we are unable to release any benefits from your State Pension or a company pension that you are still contributing to.

Current legislation allows you to potentially take your pension benefits if you are age 55 or over.

Retirement at earlier ages may still be possible on the grounds of ill-health, specialist occupation, or if granted under scheme rules.

No. Your State Pension is provided by the Department For Work and Pensions and cannot be accessed.

 

If you would like to know the amount of pension you can expect to receive from the State, you should request a forecast call us on 01753 653 331 for more information on how to to this.

You are not able to sell your pension, or assign the policy or benefits to another person or third party.

However, the process of taking pension beneifts early has been referred to as 'selling your pension'. More common terminology is Pension Release, or Pension Unlocking.

Taking your pension early will reduce your retirement benefits and therefore is not suitable for the majority of people or circumstances and should not be seen as an easy option for raising cash.

Therefore you should think carefully before considering selling your pension/pension release/pension unlocking. In order to assist you in making the right decision, our professional and impartial team will provide you with all of the information and support that you need.

Cost

We'll provide a no obligation review of your needs and objectives, and the future implications of any decisions to determine if pension release is appropriate for you. Any costs will be agreed with you in writing before you are committed to pay us.

Convenience

Our service is carried out by telephone, post and online, no salesperson will call at your home.

Clarity

We regularly review all our literature to ensure our service and advice is delivered in plain english.

Ongoing Service

if you decide to proceed, our service doesn't end when you receive your lump sum or income. We provide ongoing advice in respect of any funds remaining invested, and are always available to answer any queries you may have.

 

Our aim is to help you make the right choice in order for you to meet your financial objectives now, and in the future.

Important Information
Remember a pension is designed to provide you with benefits when you retire. 
The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. 
The Financial Conduct Authority (FCA) does not regulate some forms of Tax and Wills advice.