Unlocking My
Pension Early
Can I unlock my pension early?
If you are aged 55 or over and you have an urgent, perhaps desperate need for cash, you may be able to release a tax-free cash lump sum from your pension now without taking your pension income. The cash can be used for any purpose including paying off personal and business debt.
Although releasing cash may sound very tempting you need to stop and think about whether you really need to do it. It is rarely in anyone's long-term financial interests. Only in exceptional cases, where you have immediate needs and no other option, should you even consider doing it.
It will affect your income and retirement for the rest of your life - there are often better ways to address any short term cash needs so think very carefully about it.
We strongly suggest you ask yourself the following questions before deciding whether or not to unlock your pension lump sum:
- How much cash do I actually need now?
- Would I be better off borrowing the money?
- Should I consider selling or cashing in other investments?
- If I cash in my pension fund(s) now, will I have enough to live on in retirement?
If you still feel pension unlocking might be the right thing for you because of your circumstances, then contact us. We'll review your needs, objectives and the future implications of any decisions for you and your future. We will consider all other alternatives, and only when all other options have been exhausted will we consider pension unlocking. Our initial consultation is free and without obligation. For pension advice we offer products from whole of market.