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What Happens to your Pensions if you Leave the UK?

What Happens to your Pensions if you Leave the UK?

By | QROPS UK | No Comments

If you are planning on relocating abroad and leaving the UK, you are likely to have many questions about what happens to your UK pensions. From whether you can still claim your State Pension to whether you should transfer your UK workplace or private pension to a QROPS.

You will have worked hard to build your pension pots and it is understandable that you will want to get the most out of them in your retirement. If you are planning to move abroad permanently it could be beneficial to transfer your UK pension to a QROPS. Before making any changes to your pension plan it is advisable to seek the advice of a financial adviser that specialises in expat pension advice including UK pension transfers.

Can I Claim my UK State Pension Abroad?

If you leave the UK you will still be eligible to receive your State Pension, providing you have paid at least 10 years of National Insurance Contributions and you will need to have contributed for 30 years to receive a full pension.

However, you will only receive pension increases each year if you live in:

  • the UK for 6 months or longer each year
  • the European Economic Area (EEA)
  • Switzerland
  • a country that has a social security agreement with the UK that allows for increases

If you are planning to leave the UK there are several options available to you for your private and workplace pensions, two of the most common are leaving them where they are in the UK or transferring them to a QROPS.

Leaving your Pension in the UK

If you move abroad and leave your pension in the UK it will be held by your pension provider until you reach pension age and can start to claim it as you would in the UK. If you move abroad your pension would still be paid in Sterling, meaning that exchange rates and currency costs could mean your pension payment could be less than if you were living in the UK.

To give you a better understanding of how leaving your pension in the UK may affect you it is advisable to seek independent financial advice to ensure you are aware of costs, implications, restrictions and benefits of leaving your pension in the UK.

Transfer your UK Pension to a QROPS

If you have private pensions or workplace pensions in the UK you may be able to transfer these to a QROPS providing you meet the conditions. There are many benefits to transferring your UK pension to a QROPS, including:

  • Reduced tax liability
  • Increased flexibility of pension income
  • Greater tax efficiency
  • No currency conversion costs
  • Not affected by exchange rates

It is always recommended to seek independent expat pension advice before transferring your pension to a QROPS from a UK pensions to ensure you understand the solutions available to you, the benefits of each and any exit fees you may occur when entering or exiting.

Find out if a QROPS UK Pension Transfer if Right for you

If you are looking for independent pension advice on whether transferring your UK pension to a QROPS could be beneficial, we can help you find the right pension adviser to help you with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

The financial advisers we recommend are experienced retirement planning, UK pension transfers to QROPS and regularly work with their clients to provide support and guidance on all aspects of pension advice for clients leaving the UK. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

At Pensionadvice.org we can help you find a registered financial adviser for pension advice when leaving the UK, including QROPS. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Will Early Retirement Affect your Pension Pot?

By | Manchester | No Comments

Depending on the rules of your pension scheme it may be possible to take your benefits from your pension early. How this will affect your pension pot will depend on whether your pension is a defined contribution scheme or a defined benefit scheme.

One of the main ways that your pension may be affected is that your benefits could be reduced if taken early as it is likely your pension will be paid to you for a longer period of time and contributions will stop if you are no longer working.

While it may be necessary for you to retire early due to a change in your circumstances such as ill health, it is imperative you seek independent financial advice before making any changes to your pension plan to be sure you understand how it will affect your pension and your retirement income. A financial adviser will be able to work with you to ensure you are taking the best course of action.

If you are looking for independent pension advice in Manchester, we can help you find the right pension adviser to help you with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

Early Retirement and Defined Contribution Pension Schemes

If you are a member of a defined contribution pension scheme you will likely have the option to open your pension pot from the age of 55. In some cases, schemes are set up for special industries where early retirement is likely, that allow members to access their pension pots before the age of 55. Contacting your scheme provider or seeking an advice from an independent pension adviser will help you determine the rules on early retirement that apply to your pension scheme.

While early retirement may not always be avoidable, there are some disadvantages to opening your pension pot early, these include:

  • Your pension pot will be smaller as you will have had less time to pay into it and it will have had less time to grow
  • Your retirement income will be less as it will need to be paid for longer
  • Depending on the rules of your scheme there may be early exit fees
  • If early retirement is taken during a fall in the financial market, your pension investment may not have performed as well and may not have had time to recover from market instability

Early Retirement and Defined Benefit Pension Schemes

As with defined contribution schemes, your defined benefit pension will likely permit you to take your benefits from the age of 55 and in some cases earlier than 55, this will depend on the rules of your scheme.

Early retirement from a defined benefit pension scheme could mean that your pension income is reduced as it will have to be paid for longer and you will not have had as much time to build your pension pot. Also, your defined benefit will likely be reduced as your time as a member of the scheme will be less if you retire early and therefore your accrual rate which is used to determine your benefit will be affected.

Another important to factor to consider is your state pension, you will not be able to draw your state pension until you reach state pension age. The age at which you can draw your state pension depends on when you were born. While your state pension should not be relied upon, it can provide a top up to your personal pension plan.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients in Manchester to provide independent pension advice. Our financial advisers will work with you to determine how early retirement will affect your pension pot and advise on the best course of action.

At Pensionadvice.org we can help you find a FCA registered financial adviser for independent pension advice in Manchester. The financial advisers we recommend offer bespoke pension advice in Manchester that is tailored to your unique personal circumstances.

Key Questions to Ask a Financial Adviser

Key Questions to Ask a Financial Adviser

By | Chelmsford | No Comments

Planning for your retirement can be confusing and stressful, from understanding the different types of pensions, deciding which pension plan is best suited to you to knowing if you are contributing enough to your pension for a comfortable retirement. Seeking advice from an independent financial adviser can help remove the confusion and stress.

A good financial adviser will work with you to ensure you understand your options, the benefits and the potential risks and will ensure you have the most effective pension strategy in place. It is important to ensure your financial adviser is providing bespoke advice that is tailored to your personal circumstances and financial goals.

If you are looking for independent pension advice in Chelmsford and the surrounding areas, we can help you find the right pension adviser to help you with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

Questions to Ask

Choosing the right independent financial adviser is an essential part of making your money go further and ensuring your retirement is financially comfortable. Here are a few key questions to ask them:

    1. Are you approved by the Financial Conduct Authority (FCA)? It is important that you use a financial adviser that is approved by the FCA and on the FCA register.
    1. What services do you offer? Asking about their services will help you determine whether they have the experience and knowledge to help you meet your goals. For example, if you are looking for pension advice, but the adviser you are speaking with doesn’t offer it as a service they are not a good match for your requirements.
    1. How, and how much, do you charge clients? This is likely to be one of the first questions that comes to mind once you have decided to seek financial advice. A financial adviser must tell you how much they charge before you are taken on as a client. Although they may not be able to give you an exact quote, they will be able to give you guide to costs or at least tell you how they structure their fees.
    1. Will I work solely with you, or with a team? It is important to understand how they work and the kind of relationship you can expect to ensure they are a good fit.
    1. How do you deal with someone who has more than one financial objective? An experienced adviser will listen to a client and help them to assess and define their key financial goals. They will be able to provide a tailored strategy that stands the best chance of achieving the targets once they have been established.
    1. How regularly will you assess my financial situation and provide a progress summary? It is imperative to review your pension plan to ensure it is performing well and to review other options which may be available.
    1. What will the first meeting involve? Asking about your first meeting will give you a good insight into your adviser’s approach and will help you understand how they work and what you can expect.
    1. What should I prepare? Knowing what to prepare for your first meeting will ensure you are armed with the information needed and will help you get the most from your initial meeting.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Chelmsford and across Essex. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

At Pensionadvice.org we can help you find a FCA registered financial adviser for pension advice in Chelmsford. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

State Pension Triple Lock

What is the State Pension Triple Lock?

By | Lincolnshire, State Pensions | No Comments

In recent weeks you may have seen a lot in the news about the State Pension triple lock guarantee, but what exactly is the triple lock and what does the future hold for the guarantee? The State Pension triple lock was introduced in 2010 by the coalition government to guarantee that the basic State Pension would increase each year by either:

  • Price inflation
  • Average earnings
  • 2.5%

Whichever is the highest of these three factors determines how much pensioners will receive in their annual rise. The guarantee was introduced to help bring pensioner income in line with wages. While this has been beneficial to pensioners, the UK State Pension is still one of the lowest in Europe. At its fullest amount the New State Pension is £159.55, which while an improvement on the basic State Pension which is currently £122.30, it is unlikely to be enough to rely on in your retirement.

If you are at the earlier stages of planning for your retirement it is important that the state pension is not relied upon as in the future it may not exist in the capacity it does today and even if it is still in existence when you reach retirement age, it will likely not be enough for a comfortable life in your later years.

The Future of the Triple Lock Guarantee

While Prime Minister, Theresa May had confirmed that the triple lock will remain until at least 2020, the upcoming snap election could alter those plans and see the guarantee running for longer or being scrapped in favour of a double lock guarantee.

A double lock guarantee would see the State Pension rise year on year in line with either price inflation or average earnings, whichever is highest. Scrapping the 2.5% increase element of the triple lock would be a more cost effective solution for the government.

While the future of the triple lock guarantee is currently unknown and will likely become clearer in the coming months, for now and possibly the next three years at least, the State Pension will continue to increase by at least 2.5% each year.

Pension Planning Advice

If you are looking for independent pension advice in Lincolnshire and the surrounding areas, we can help you find the right pension adviser to help you with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincolnshire and across the East Midlands. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

At Pensions.org we can help you find a registered financial adviser for pension advice in Lincolnshire. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Transferring a Final Salary Pension

The Pros and Cons of Transferring a Final Salary Pension

By | Essex, Final Salary Pensions | No Comments

If you have a final salary pension scheme you be considering whether you should transfer it, there are pros and cons for transferring your final salary pension. It is advisable to seek independent financial advice before making any changes. Getting financial advice will ensure you are making an informed decision and making the best decision based on your circumstances and financial goals.

If you would like to speak to an independent financial adviser about your final salary pension and whether it would be beneficial for you to transfer it, we can help you find pension advice in Essex. All the financial advisers we recommend are experienced in all aspects of pension advice and are approved by the FCA.

Benefits of a Final Salary Pension

Remaining in your final salary pension scheme can offer many benefits, including:

  • Your pension pot is based on your final salary and does not rely on the performance of the stock market.
  • Your pension will rise in line with inflation.
  • Your spouse or civil partner will usually be eligible for a spouse pension if you die, although this may not be the full amount of your pension.

Pros of a Final Salary Pension Transfer

The reasons for you considering a final salary pension transfer will be personal to you and your financial goals and seeking independent financial advice can help you determine whether it is right for you. Here are some of the pros for a final salary pension:

  • Greater flexibility – after you have transferred your pension you can withdraw money from it whenever you want to, you no longer have to take your pension pot as a regular income.
  • More tax-free cash – this will depend on the type of transfer, but you may be able to take a larger amount than the current 25% as a tax free lump sum.
  • Leave money to your family after you die – while your spouse or civil partner may get a spouse pension when you die. If you transfer your pension, you can leave the money from your pension to leave to family as inheritance.
  • Poor health – if you are in poor health a final salary pension transfer could give you a larger sum of money. When you transfer your pension the amount you can transfer is based on how long the average person will live and does not take into account the status of your health.
  • Remove risk of employer going bust – although your final salary pension would be protected by the Pension Protection Fund if your employer went out of business. It is not guaranteed to pay your full pension and is more likely to pay a percentage.

Cons of a Final Salary Pension Transfer

Just as there are pros of a final salary pension, there are also cons. It is imperative that you seek independent financial advice before making any changes to your pensions to ensure you have the most effective strategy in place. The cons of a final salary pension transfer include:

  • Could be risky – a final salary pension provides a guaranteed income for the rest of your life, if you transfer your pension you could risk running out of money in your retirement.
  • No inflation protection – without a final salary pension which rises in line with inflation, you could risk having less income in your retirement.
  • Become reliant on investments – if you transfer your pensions you may increase your level of risk if invested on the stock market to provide an income for your retirement.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Essex. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

At Pensionadvice.org we can help you find a FCA registered financial adviser for pension advice in Essex. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Could you Benefit from a Pension Review?

Could you Benefit from a Pension Review?

By | Lincoln | No Comments

As with any long-term plan, financial or not, it is good practice to regularly review your plan to ensure it is still the best option for getting the best results. This is especially true when it comes to pension planning, reviewing your pension will help you monitor the performance of your pension plan and make amendments accordingly.

If like many people, you have not reviewed your pensions since they were set up or for some considerable time, it may be time for a pension review. To ensure you have the best pension planning strategies in place, it is advisable to seek independent financial advice that is tailored to your unique personal circumstance and financial goals. Our recommended financial advisers provide pension advice in Lincoln and can help you review your pensions, track lost pensions and devise a pension plan that is best suited to you.

Benefits of reviewing your pension?

As people are living longer, our pensions have to work harder than the pensions of our parents and grandparents. It is not uncommon for retirement to last for 30 years, meaning our pensions must provide an income for a longer period of time. To ensure you are getting the most from your pensions and are making use of all available options and freedoms it is imperative to regularly review your pensions.

It has never been more important to not rely on your State Pension as your sole retirement income, at its fullest amount the New State Pension is currently £159.55 per week which is unlikely to be enough income for a comfortable retirement. It is good practice to treat your State Pension as a top-up to your private or workplace pensions.

Working with an independent financial adviser to perform regular pension reviews will help you understand your current position and the action that needs to be taken to ensure you have a financially secure retirement and can live the lifestyle you want in your later years. A pension review may also help you trace pensions you have lost track of such as workplace pensions with an ex-employer.

Undertaking a pension review will give you the peace of mind that your pensions are working as hard as you are, so you can enjoy a good income in retirement and live comfortably in your later years. Pension planning often begins as soon as we start our working life and what was a good solution some years ago, may not be so favourable now, a pension review will help you identify what is working for you and what other solutions are available.

Is it time for a pension review?

To help you determine whether it could be time to review your pension, ask yourself the following questions:

  • What charges you are paying for your pension?
  • What investment returns are you receiving from your pension?
  • How much retirement income will your pension generate?
  • Have you reviewed your pension in the last 5 years?
  • What age will you retire or be able to afford to retire?

If you are looking for independent pension advice in Lincoln and the surrounding areas, we can help you find the right pension adviser to help you with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

At Pensionadvice.org we can help you find a registered financial adviser for pension advice in Lincoln. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

QROPS and Moving Back to the UK

What Can You Do with Your QROPS if You Move Back to the UK?

By | QROPS UK | No Comments

Seeking warmer climates, cheaper cost of living and a more relaxed lifestyle, when Brits make the decision to relocate to another country, many have the intention of it being a permanent move. However, for some this is not always the case and unforeseen circumstances can see some expats deciding to move back to the UK for career progression, to be closer to family or for health reasons.

Those relocating abroad often transfer their UK pensions to a Qualifying Recognised Overseas Pension Scheme (QROPS) to benefit from reduced tax liability, increased flexibility of pension income and greater tax efficiency. But, when moving back to the UK many are left wondering what they can do with their QROPS.

If you have moved overseas and are thinking of moving back to the UK you may be left wondering what happens to your QROPS in the UK and whether you can transfer your QROPS back to a UK pension scheme.

Seeking advice from an independent financial adviser will help you to gain a clearer understanding of the different options available regarding your pension and QROPS in the UK and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

While QROPS can be left as they are in the country you have been living and where they were set up, it may not be the most effective solution and transferring your QROPS to a UK based pension scheme may be more beneficial.

Transferring your QROPS in the UK

If you are thinking of transferring your QROPS back to the UK, two of the most effective solutions you may want to consider are transferring your QROPS to a UK workplace pension scheme or to a Self Invested Personal Pension (SIPP). To be eligible for these types of pension scheme you would need to be working when you return to the UK and should seek independent financial advice to ensure you are making the most effective decision for your personal circumstances.

Transferring your QROPS to a SIPP may offer cost efficiencies over leaving your QROP in its country of origin. Typically, QROPS have greater running costs than a SIPP, transferring a QROPS to a SIPP is usually straightforward and involves making an application to the scheme trustees of your QROPS to request permission to make the transfer.

If you are planning to or have already moved back to the UK and are looking for advice on QROPS in the UK, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement. It is always recommended to seek advice before transferring your QROPS in the UK to ensure you are aware of the benefits of each option and any exit fees that may be applicable.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice including advice on QROPS in the UK and what options are available should you move back to the UK.

At Pensionadvice.org we can help you find a registered financial adviser for QROPS in the UK. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

QROPS UK Pension Transfer

Should you Consider a QROPS UK pension Transfer Overseas?

By | QROPS UK | No Comments

British expats or international workers with UK pension rights should consider whether a Qualifying Recognised Overseas Pension Scheme (QROPS) could be beneficial to them. Those with UK pension rights who are living away from the UK permanently or those looking to retire abroad could benefit from transferring their UK pension to a QROPS.

QROPS are often also known as offshore pensions as QROPS providers operate from financial centres outside the UK. Although QROPS in the UK are not bound to the restrictions of UK tax laws, they are recognised by HMRC and should certainly be explored by individuals considering an overseas move.

Transferring your QROPS UK pension

There are many benefits of a QROPS UK pension transfer and an independent financial advisor will be able to advise how these may affect your personal circumstances and which would be most advantageous for you. These benefits include:

  • Reduced tax liability
  • Increased flexibility of pension income
  • Greater tax efficiency

Another benefit to consider with a QROPS UK pension transfer is changes in exchange rates and costs associated with currency conversion. A UK pension will pay you income in sterling whether you are living in the UK or abroad, if exchange rates drop you could lose pension income to unfavourable exchange rates and also be faced with high currency conversion rates. With QROPS, your pension income is paid in the currency of your choice, allowing you to avoid exchange rates and currency conversion rates.

If you have or are thinking of moving overseas you may be considering your options with regards to your pension and whether a QROPS UK pension transfer is the most effective solution for you. Seeking advice from a QROPS pension specialist will help you to gain a clearer understanding of the different options available and ensure that the most effective retirement planning strategies are in place for your personal circumstances.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice including advice on QROPS UK pension transfers for British expats.

At PensionAdvice.org we can help you find a registered financial adviser specialising in QROPS in the UK. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

A Guide to Workplace Pensions

A Guide to Workplace Pensions

By | Essex | No Comments

A workplace pension is a way of saving for your retirement that is arranged by your employers, these may be called occupational pensions, works pensions, company pensions or work-based pensions. If you join a workplace pension, a percentage of your pay is automatically contributed to your pension scheme every payday and in most cases your employer will also make monthly contributions to your pension scheme.

The amount of personal and employer contribution will vary depending on the rules of your pension scheme, but your employer will provide full details on the rules before you enter into a workplace pension scheme. Before making the decision to join a pension scheme it is good practice to seek pension advice from an independent financial adviser to ensure you are making an informed decision and making the best decision based on your circumstances.

If you are looking for independent pension advice in Essex, we can help you find the right pension adviser to help you plan for your future in these uncertain times and provide a good level of income for your retirement.

The financial advisers we recommend are experienced in retirement and pension planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Essex.

Different types of workplace pensions

While the names may vary depending on the provider, there are three main categories of workplace pensions, they are:

Defined benefit pension schemes

These types of pensions provide retirement benefits based on your earnings and length of time you have been a member of the scheme. Your earnings may be defined differently to the amount shown on your payslip depending on your pension scheme. Your employer will provide full details of the scheme, it is good practice to seek financial advice before
joining any pension scheme.

Defined contribution pension schemes

These pension schemes take the contributions made by you and/or your employer and invests them into a range of investments, depending on your scheme you may be offered a choice about these investments. The benefits you receive at retirement depend on the level of contributions made, how long they have been invested and how the investments have performed.

Cash balance plans

Cash balance plans include parts of both defined benefit and defined contribution pension schemes. A cash balance plan may provide you with an income in retirement or a tax-free cash lump sum and an income.

What if you change jobs?

If you change your job your workplace pension still belongs to you, if you no longer contribute to the scheme the money will remain invested and you will receive pensions payments when you reach the pension age as set out in the scheme.

If you already have a workplace pension with an old employer you will still be able to start a new workplace scheme in your new job and may be able to carry on making contributions to your old pension or combine the new and old pension schemes. It is recommended that you seek pension advice from an independent financial adviser before making any changes to your pensions.

At PensionAdvice.org we can help you find a registered financial adviser for pension advice in Essex. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances and meets your financial and retirement objectives.

What Can You Do With Your Pension Pot?

What Can You Do With Your Pension Pot?

By | Lincoln | No Comments

If you are nearing retirement age, you may be considering what you can do with your defined contribution pension pot. There are a variety of options available to you and typically you can take 25% of your pot as a tax-free cash lump sum, but what can you do with the rest?

There are many ways you can take your defined contribution pension pot, to ensure you are making the best decision to suit your needs and personal circumstances it is good practice to seek pension advice from an independent financial adviser to ensure that you have the most effective and efficient pension planning strategy in place that is tailored to your personal financial situation and provides a sufficient income for your retirement.

If you are looking for independent pension advice in Lincoln and the surrounding areas, we can help you find the right pension adviser to help you plan for your future in these uncertain times and provide a good level of income for your retirement.

The financial advisers we recommend are experienced in retirement and pension planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincoln and the surrounding areas.

Let’s take a look at some of the solutions that may be available to you to give you a better understanding of your options before speaking to a financial adviser.

Leaving your pot untouched

When you reach your selected retirement age you do not have to start taking money from your pension pot, you can leave your money invested until you need it. Leaving your pension pot untouched may be a viable option if you continue to work after your selected retirement age and leaving it invested could mean that your pension pot could grow and you could have more money to last a shorter length of time. If you decide to leave your pension pot untouched, you would not be liable to pay tax on your pension pot.

Buy an annuity

You can use the money you have saved in your pension pot to buy an insurance policy called an annuity that guarantees you an income for the rest of your life – with no restrictions on how long you live. It is possible to take 25% of your pot as tax-free cash and buy an annuity with the other 75%. You would be liable to pay tax on your annuity income.

Flexi-access drawdown

This type of drawdown provides you with an adjustable income from your pension pot, which means you can take a regular income from your pension pot but are able to make changes or take cash sums if needed. You are able to take 25% of your pot as a single tax-free cash sum, the remaining 75% is invested to give you a taxable income.

Take small cash sums

It is possible with some but not all pension providers to take smaller sums of cash from your pension pot, how much and when you take it is up to you. Each time you release a small chunk of money, 25% of that sum is tax free and the rest is taxable – meaning that your 25% tax-free amount is paid over a period of time rather than in one lump sum. It is important to mention that some pension providers may charge a fee for taking out cash.

Take the whole pot in one go

It is possible to cash in your pension and take your pot in one go by taking your whole pension pot as cash, this would break down into 25% being tax free and the remaining 75% would be taxable. While this may seem attractive, it would mean that your pension would not provide a regular income.

It is imperative to seek independent financial advice before making any changes to your pension pot and to ensure you are making the best decision based on your needs and financial objectives.

At Pensions.org we can help you find a registered financial adviser for pension advice in Lincoln and the surrounding areas. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances and meets your financial and retirement objectives.