Have you asked yourself the question, can I cash in my pension?

Things you should take into account before cashing in your pension.

The news stories have shown how some people spend their hard-earned pension pot, spending lavishly on expensive cars, holidays and electronics, but there is a serious side to cashing in your pension early. Obviously it's your money and you can spend it how you see fit, but you should be aware of the implications.

The first thing to consider is your potential tax liability, and whilst you are legally allowed to cash-in-your pension to the value of 25% tax-free, every penny after that will be taxed as income. So if you're a higher rate tax-payer that could be 40%!

Are you looking to pay off debts or a mortgage by cashing in your pension?

Property is certainly considered a superb asset within which to keep your pension, but the mortgage interest rate may well make it more cost efficient to keep the funds in the pension and take a monthly income that covers the cost of the mortgage. And you should take advice from an FCA registered professional every time.

You could also consider cashing in your pension and moving into a fixed-rate bond with a lock-in-period that exceeds 5 years, and an income would be received from that bond. However that income is also likely to be taxable as income.

There are a multitude of options when it comes to cashing in your pension, contact us to get introduced to an FCA registered professional.

As pension advice is an unregulated market there are a lot of unscrupulous "scam" offers. We will ensure you are only introduced to FCA regulated advisers that have extensive pension experience. The adviser will take into account your personal circumstances to provide customised options for you. They will also explain any tax related issues and liabilities that may fall due.