Thursday, 25 October 2012

Can I cash my pension?

Do you feel like you should have more control over your money? Do you think UK pension schemes are unfair and inflexible? Would you benefit from the opportunity to access your pension early? If you answered yes to all these questions, there might be a way for you to get some of your money back.

Many people across the UK share the opinion that pensions in the UK are unfair because you cannot access your money after it has been locked into a pension scheme, no matter how urgent your need for it is. On top of this, once you have access your pension, you are still limited as to how much you may actually access each year. This is decided by your Annuity provider, who may end up keeping your money themselves rather than allowing you to pass it on to loved ones in your will.

Now is the time to ask yourself the question: “should I cash my pension?” There are companies who are able to provide you with professional help and the means to get a lump sum of cash from your pension. Some companies will even allow you to do this before the age of 55 (the usual age at which this is allowed). They can also help you eliminate the need to purchase Annuity, and to minimise income and inheritance tax.

It should be noted that cashing in your pension is recommended if you have an urgent need for a lump sum of money and all other alternatives such as short-term loans have been considered. This is because of the risk that your income will be reduced in the future. However, cashing in your pension will give you more control over your money, so you know exactly what's happening to it.

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