Receive advice from time-served FCA registered advisers.
Pension surrender is a commonly used method of receiving a lump sum from their pension earlier than originally anticipated.
The most important aspect of your decision to use pension surrender is that you receive professional advice. Your pension fund is primarily designed to provide a retirement income for you, and using pension surrender is almost certain to reduce that retirement income.
If after taking advice you decide pension surrender is your method of choice then you should be able to release 25% of your fund tax free. If you wish to release more than 25% then you will be expected to pay tax on the remainder at your normal tax rate. Which could be 40%. This means you should take serious consideration when thinking about releasing more than 25%.
It's also worth remembering that in the future both your circumstances and the prevailing tax rates can change.
The tax free release is usually called a pension commencement lump sum or PCLS, and you can usually take an income after taking the initial release.
Finally we must once again state that using pension surrender is a serious decision and we suggest that you seek out professional advice prior to making any decision.
Pension Surrender for under 55's
Professional FCA registered advisers.
Maybe you've considered the question, can I use pension surrender?
Depending on your personal circumstances it may be possible to release cash from your pension, even if you are under the age of 55.
However, we must point out that it is against the law in to sell (or release cash) from your pension fund unless your circumstance allow you to meet very specific criteria. And this can often be dependent on the original pension scheme you signed into, and if you have any serious illnesses. Contact us to find out if you qualify even if you're under 55.