Pensions Advice – Unlock a pension
08.28.09
Pensions Advice – Unlock a pension
For further independent advice go to http://pensionsadvicewales.co.uk/site/
For those of you who want to cash in your pension (or unlock your pension, as it is more commonly known), is a misleading phrase, as most of the time all it means is taking your pension early, taking a lump sum, and maybe instead of or as well as, taking an income.
For some, the above is not possible. However, provided you are over 50 there is usually a way we can help unlock your pension. How this happens will greatly depend on the type of pensions you have.
For many people, cashing in their pension is to help with paying off debts, paying for home improvements, using as a deposit to buy another property, support and increase their business, provide short term cash or a myriad of other reasons.
For others, all they want is their tax free lump sum. For some this is possible, but again depends on the type of pension you have. However, there are downsides to unlocking pensions:
The Dangers of Unlocking your Pension
There may be penalties for unlocking your pension early
Reduction in benefits if you cash in your pension early
A reduction in the amount you would get as opposed to leaving it till a later date.
Any imcome taken after you unlock your pension could possibly be taxed.
Unlocking your pension early will reduce the benefits you could take in the future.
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Tags: advice, Cashing in a pension early, financial planning, over 65, Pension Planning, pensions, Pensions Advice, pensions advice wales, start your financial plan, taking a pension early, Unlock a pension
