Should You Consider Cash for Pensions?

Cashing in part of your pension scheme is something many people have heard about. But is it right for you? This article will give you more to think about so you can consider what might work in your particular situation.

What will you do when you retire? Do you hope to have a sizeable pension pot to draw from when the time comes? Would you get a cash withdrawal from it if you possibly could?

This last question is one many people would be tempted by. Cash for pensions is a situation whereby you can sometimes take a portion of your pension as a lump sum. This can be used however you wish and it can be a nice injection of cash to get when you retire.

However not everyone is in an ideal situation to benefit from this. You should consider advice whenever you consider any change in your pension circumstances, including the option to transfer pension fund. If you are in the UK – transferring pension funds is an option you might want to consider if you want to ensure you have the best pension pot when you do retire.

If you want to transfer pension fund – regardless of whether you get a lump sum or not – get professional advice first. People in the UK – transferring pension funds – have lots of options to choose from. This can make it harder to figure out what is right for you. If you want to make sure you can rely on a great pension fund when you do give up work, now is the time to see whether you can improve on what you have at the moment. You might be surprised to find there are other options out there that are better than the one you currently have.

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.