Unlock Tax Free Cash from your pension

Tax Free Cash can be released from both personal pensions and company pensions. This is a legitimate way to release the tax free cash in your pension and should not be confused with the illegal practice known as pension liberation.  Typically 25% of the value of your pension can be released as tax free cash.

To qualify for tax free cash from your pension you should:

  • Be over 55 years old.
  • Have a Personal Pension or Company Pension.
  • Not already be taking an income from your pension.
  • Accept that this action can reduce your retirement income.

If you think pension tax free cash release could be suitable for you then you should call us on 01604 832932.

Our entire process is kept simple, communication is conducted over the telephone and in writing by post or email.

Once we have completed a free telephone consultation we will contact your existing pension providers to obtain the technical information required to allow us to advise you on your options. With the data on your existing pensions we will be able to establish how much tax free cash you can release.

We then send you a written report outlining our recommendations and explaining the risks and any disadvantages of taking the pension tax free cash early.

If you decide to proceed we will complete the paperwork to transfer your existing pension to a suitable pension release provider, which will be one of the major pension companies. Once they receive the funds the tax free cash will be transferred directly to your bank account.

The time taken to release the cash from your pension is dependent on how quickly your existing provider processes the transfer, if everything goes smoothly, you could receive your money in as little as 2 weeks.

Releasing pension tax free cash - Explained:

You can release a tax free cash lump sum of up to 25% of the value of your pension fund. This lump sum is also referred to as the "pension commencement lump sum" (PCLS). You do not have to take the full 25% tax free cash, this is just the maximum.

The remaining fund will be invested in a Personal Pension that enables you to use the flexi-access drawdown you need to access the tax free cash.  We recommend well known Personal Pensions or SIPPs provided by the major UK insurance companies.   The remaining funds continue to be invested until you need it to provide a monthly income either directly from the fund or through the purchase of an annuity. 

You do not necessarily have to retire or draw an income from your pension in order to release tax free cash. If you don't want to take the income now the remaining fund is invested until you retire.  We provide advice and recommendations on suitable investment options for your remaining fund.

It is very important that you receive advice based on your personal circumstances before deciding on unlocking your tax free cash.

Are there any downsides?

If you unlock tax free cash out of your pension now you will have a smaller pension pot when you retire.  This means you may not have sufficient income to meet your needs in retirement.  As such, Pension Release is only suitable to a limited number of people and should only be taken as a last resort. You should consider all other ways of raising money.

Releasing tax free cash from your pension can affect your entitlement to state benefits. If you are or expect to receive state benefits you should first consult the Citizens Advice Bureau www.citizensadvice.org.uk or Benefits Adviser at https://www.gov.uk/benefits-adviser

How much does the advice cost?

The initial consultation is free, during this you will receive an explanation of the ways in which you can pay for the advice.  Typically we charge 2% of the amount transferred into but it could be less.  So for a £50,000 transfer we would charge up to £1,000 which can be paid from the remaining fund if you wish.  

We offer a range of fee payment options and our charge is usually taken from the pension transferred after the tax free cash has been released.

Financial Advice... pure and simple

Cade & Co provides financial advice and planning, in plain English, to people who want to ensure they make the right financial decisions at the right times and at the right cost. It's simple!
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