Deal Review for Annuity Alternatives: Can I Cash In My Pension?

While patience is often an invaluable companion, it is not always the guardian of your best interest. Recent years have shown that even conservative investment vehicles can suffer losses and private individuals deemed most successful in overturning the trend were dynamic managers of assets. Even of those generally regarded as frozen.

Along those lines, it is time to unveil a myth: pension funds are not available to you only upon retirement. By law, you are entitled to using your pension savings before you are 65. You have the right to unlock your pension, partially or in full, and then invest the funds elsewhere if you have noticed that your pension fund is underperforming in recent years.

In planning your exit, you may want to ensure that no technicalities have been omitted along the way. Expert advice, which is a call, text message or e-mail away, may help you plan in full visibility.


A question you have to certainly discuss with an adviser is taxes. Unlocking your pension will mean zero tax for you only if you cash in a quarter of your funds. You have to prepare to pay the government the relevant charges for any extra amounts.


Another important point is that it takes time before you cash in. Since by their very nature pension schemes are complicated in that they have many interconnected time-pegged valuation mechanisms, unlocking them many mean is related to waiting time anywhere from several weeks to several months.

Transfer value

You have to also discuss the transfer value of your pension. A legal requirement is that unlocking can only happen if your pension fund is worth at least £25,000 in the past 12 months.

Only if closed

Funds from your pension scheme are open to unlocking if your employer and you have last contributed to the pension scheme three months ago. This legal requirement aims to avoid any confusion. In this way pension valuations on either side are kept clean and clear, as contracted.

Something more you need to be aware of is that once you withdraw all the money from your pension you will no longer be able to make any payments. So if you spend all your money from the pension early you may find yourself with no income after retirement. It is advisable to take small amounts. 


With Cash My Pension Experts you get tailored advice from advisers whose sole specialty is this particular field.

With Avril Pension Services, you can have not only general advice on the options your particular circumstances can afford, but also a free pension cash-in valuation.

With Sell Pension Today you get introduced to the three ways in which you can manage your closed pension scheme, namely pension sale, pension release and pension loans. Introduce yourself to the options, discuss them and then take your final decision.

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