Cash In Pension: Access Funds Locked in Your Pension
Many people don’t realise they can cash in pension funds before they reach the official UK retirement age.
Because of changes to pensions legislation in recent years, those over the age of 55 can now unlock part of their retirement fund before they finish working. Much depends on the type of pension you have, but you shouldn’t blindly assume that you’re not eligible.
There are a number of reasons why people are cashing in their pension pot early, including:
- Freeing up money to set up a new business
- Clearing high-interest debts
- Paying for a child’s wedding or house deposit
- Funding a move abroad
- Covering a redundancy
- Paying for a university course
You may ask; “can I cash in my pension early in a legitimate way?”
The answer is yes, but while Sellpension.co.uk only works with reputable, highly-trustworthy pensions experts who do things by the book, unfortunately there are chancers out there who are trying to defraud people. This article by Money Saving Expert highlights the differences between genuine, legally-compliant pension cash-ins and illegal pension liberation scams.
If somebody tells you that you’re able to access a chunk of your pension before your 55th birthday, chances are they are part of an elaborate scam. They will generally contact you via email, phone or door-to-door cold calling, so if you have any doubts whatsoever, get in touch with the authorities.
Make sure you’re aware of the pros and cons of cashing in your pension
It’s always a good idea to speak to an impartial expert, as they’ll be able to advise you on the best ways to cash in pension funds.
While the thought of gaining early access to your pension is an attractive one, before proceeding you must consider whether this is the best option for you. You should think about:
- Will you be able to manage with a reduced fund when you eventually retire?
- Is there another way you could gain access to a large chunk of money?
- Have you considered the possible penalties for early pension withdrawals?
- Do you claim state benefits? Cashing in could affect these.
- Have you taken tax implications into account?
Don’t go it alone
When you think to yourself; “should I cash in my pension early?” you need to remember that this is not a decision you can afford to make on a whim. Regardless of how much research you do on the subject, there is no substitute for the advice offered by pension industry experts.
At Sellpension.co.uk, we do all we can to ensure you get useful, impartial advice before you make a final decision. We only work with professionals who have a good track record of taking a client’s individual circumstances into account, after all, everybody is different and there shouldn’t be a one-size-fits-all approach to cashing in your pension.Click Here To Get Started!