In the United Kingdom, you can withdraw funds from your pension before you retire through a program called pension release. Your pension is one of your primary sources of income when you retire. Before you release any funds, it’s important to make sure you’re using the money for a sound investment, or you have a plan to recover diminished pension funds.
Many people are taking advantage of new legislation regarding pension plans. A pension fund is a large asset. If the right opportunity comes along, it’s nice to know you can draw on your hard earned pension for investment capital. Before you get started, you need to find out the specific details of your pension arrangement with your employer.
If you’re over 50, pension release may be a viable solution to a shortage of capital, or a need for emergency funds. The amount you can withdraw at any given time depends on three factors. These factors include the type of pension, your age, and the size of your fund to date. Payment options vary according to the lender, but most people receive a lump sum when they take out a pension release.
Just because you draw on some of the benefits from your pension plan doesn’t mean you have to retire. You can’t draw funds from a pension plan at your current place of employment and continue to make contributions to that pension plan. If you’re not ready to retire, you may need to line up another job before you withdraw funds from your current pension plan.
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