Pension Release Questions and Answers
- Is Pension Release Legal?
- Am I eligible for Pension Release?
- How much money can I get out of my pension?
- Do you do the work your selves or "farm it out"?
- How much will it cost me?
- Will I have to see an adviser face to face?
- Are you Independent Financial Advisers?
- Is there a minimum value of pension fund that Grove can advise on?
- What types of pension schemes can be accessed?
- Will this affect my state benefits?
- Is this a loan?
- Am I selling my pension?
- Do I have to retire to get money out of my pension?
- If I take ongoing regular income how will this be paid?
- Will I have to pay extra tax?
- What happens if I die?
- So what's the catch?
Yes, but you mustn't get confused with Pension Liberation schemes which often use similar language to legitimate Pension Unlocking or Pension Release arrangements.
The difference is that legitimate schemes will only apply to people aged 55 or over and can usually only release a maximum Tax Free Lump Sum of 25% of the value of the pension fund.
Anyone offering to release more than 25% of your pension fund early or saying they can release funds earlier than age 55, in The Financial Conduct Authority (formerly known as The Financial Service Authority or FSA) own words, there is a high chance that these are scams trying to con you out of your money.
You should only take advice from a company who is regulated by The Financial Conduct Authority and use Insured Registered Schemes, registered under part 4 of The Finance Act 2004.
If you're aged 55 or over with money in a pension that you're not already receiving then you are eligible to receive a tax free cash sum and/or income now.
This will depend on how much money you have in your pension in the first place; with your permission we'll find this out for you. It will then depend on whether you want to take a cash lump sum or if you're looking for income, or both. You can find out about your pension by completing the "Get Started" form to the right.
CASH LUMP SUM - Whilst you can usually release up to 25% of your pension fund Tax Free there are ways in which you can release a little more by drawing down a one-off annual payment without having to continue with an ongoing regular income, although the extra sum could be taxed.
This is an option that wasn't available before April 2006 and may still not be possible with your existing pension. However; there is a way it can be made available to you.
INCOME - How much income you can have from your pension will depend on a number of things, such as your age, health and what death benefits you want included.
You also have a choice about whether to buy what is known as an annuity, or leave your pension fund invested and "draw down" an income each year. When you want to take income from your pension you don't have to take it from the pension plan provider with whom you have been saving. In fact it's probably better that you don't! In other words, you may save through a pension for many years but when you decide you want income from it you can shop around for the best deal. All pension plans include an Open Market Option. This is a 'get-out' clause which gives you the right to have your income paid by a different provider. To put it another way, it means you can and should shop around for the best deal for your money - remember it's your money!
Unlike some of our competitors we complete all the work ourselves and do not "farm out" some of it to other financial service companies. This means you can feel confident you are dealing with the actual company doing the work and giving the advice - we are directly answerable to you.
We also have permission from The Financial Conduct Authority (FCA) to advise on BOTH Personal and Company pension schemes; this requires an additional layer of professional qualifications with corresponding robust monitoring structures in place to protect you.
This is a difficult question to answer without knowing what pension you have or what it is you want to do.
Some pension providers have a charge if you're looking to get cash out early, although most of them don't. Any transfers to a new provider are also going to have setting up charges and an amount paid as a fee to us, as agreed with you.
We only charge a fee for arranging the above, which is deducted from the monies transferred, so you will not have to pay us anything just to find out what your options are. This fee does not affect the amount of tax free cash you will receive.
With any recommendation we make you will be told exactly what costs and charges there are before you decide what you're going to do.
If you don't do anything then you don't have to pay us anything.
Not unless you want to.
A large part of our service can be conducted by a combination of Telephone, Royal Mail and Email. However, given the complicated nature of Pension Release we would highly recommend a face to face meeting, especially if your enquiry relates to an old company pension scheme. Having said this though, the choice is entirely yours.
Technically we are not Independent Financial Advisers. This is because we are a specialist company dealing with Pension Release and as such there are a limited number of providers who also specialise in pensions. We have sourced who we consider to be the best providers for this type of business but that is a limited list.
Yes. We are not able to help with individual funds of less than £10,000 if this is the only pension you have. However, if you have a combination of pensions that in total add up to £10,000 or more, we can help in these instances and there would not be a minimum amount for any of the single pension funds, so long as the total amount adds up to £10,000 or more we can help.
Most pension schemes can be accessed either directly or by transferring them into one that can. Grove Pension Release specialises in ALL UK Pension Types.
These could be Personal Pensions, Stakeholder Pensions, Protected Rights Pensions and "old style" Retirement Annuity Contracts. They could be any type of Company Pension Scheme, Executive Pensions, Section 32 Buy Out Bonds, Final Salary Pension Schemes (also known as Defined Benefit Schemes) or Money Purchase Schemes (also known as Defined Contribution Schemes).
This will depend on what benefits you're receiving and how much money you want to take out of your pension. It will also depend on whether you take an income now or a lump sum.
The decision as to whether your benefits are affected is usually made at your local benefits agency so you'll need to check with them. However; we'll be able to advise you how most benefits are usually affected.
In a lot of cases your state benefits are not affected if you simply adjust what you take out of your pension. Again, we will be able to let you know about this before you make any final decisions.
No. This is not a loan because the money is already yours; it's simply a case of getting your own money out of your pension.
No. You can get money out of your pension and continue to work.
If, however; you are an active member of your employers occupational pension scheme then it is extremely unlikely you should even consider taking money from that type of pension early.
You have the choice of having it paid annually, half yearly, quarterly or monthly; either in advance or arrears and either increasing each year or remaining level in payment throughout.
In the event of your death you can also make provision for a pension to continue to be paid to your spouse or partner or dependents.
You can usually take up to 25% of your pension fund tax free. The remaining fund must be used to provided income, whether this is a one off payment used to increase the amount of cash you receive in your first year or, a regular ongoing income, it will be classed by the Inland Revenue as earned income and taxed at your highest rate. For most people this would be taxed at the basic rate of income tax.
With your existing pension it will depend on the rules of the arrangement. This is one of the things we'll look into for you.
The death benefits of any new arrangement will depend on which options you've chosen.
We'll provide you with full details about your options and explain them to you in a way you can understand.
The most obvious problem with taking any money out of your pension now is that it won't be available for you at a later date. You therefore need to make sure you're making the right decision.
You should always think about whether you would be better off borrowing the money you want instead or, if you have other savings or investments should these be used rather than taking money from your pension.
If you're considering taking money from your pension early you need to be aware that it would only be suitable for a very limited number of people and circumstances and it will almost certainly reduce your pension income in retirement. This should not be seen as an easy option for raising cash.
We will look at all your options and make a recommendation that takes this all into account. Remember, there is no cost or obligation for you to find out what your options are.
And in addition to explaining any penalties for accessing the pension now, we will also be able to warn you as to exactly how this will affect you financially in the long run, before you have to make any decisions or incur any charges.
Fill in your details below to receive your no obligation Pension Release Enquiry Form.
A wealth of experience in Pension Release..
Grove's founder started in financial services over 25 years ago in 1982.
As a company, Grove Pension Release has built up a specialist team of people to deal specifically with your enquiry.
The experience of the team individuals ranges from the least experienced juniors who deal with non technical administration duties, to the most experienced member of our team having started in the industry 44 years ago.
This wealth of knowledge and understanding is vital in providing you with the level of service you require.
We will guarantee a friendly and professional service with all enquiries being dealt with in a courteous and efficient manner.
You are treated as an individual and with the respect you deserve.
Why choose Grove?
- Fastest Possible Service
- Expert Advice
- No third party involvement
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- No Salesman will call round