Cashing in Pensions

Cash Pension or Cashing in Pensions

The term Cash Pension or Cashing in Pensions, is mainly used for when someone wishes to obtain a cash lump sum of money from their pension funds early. Cashing in pensions is, for the most part, not advisable. This is due to the simple fact that Pension proceeds exist, regardless of whether they are accrued via an occupational pension scheme or through a personal pension scheme, to provide pension plan members with an income for their retired life. Cashing in pensions prior your pensionable age would usually reduce the eventual retirement income.

Cashing in pensions would normally give the pension plan member the option to release part or all of your pension as a cash sum, 25% of which is tax free, and the rest of it would be taxed at your marginal rate of tax or, alternatively, provide you with an income for life, which is also taxed as earned income. Please note that the tax treatment would depend upon your personal circumstances and may be subject to change in the future.

Whether you release pension benefits through cashing in pensions that are occupational or personal, you can still usually take a cash sum as well as income. This tax free cash sum is known as the Pension Commencement Lump Sum or PCLS.

The income you receive after cashing in a pension will depend on several factors including whether the money has come from a personal pension scheme or an occupational pension scheme. To an extent, you have much more choice about how the income will be paid from a private pension compared with an occupational scheme. You have the option of cashing in a pension without the need to take immediate income.

Even so, to cash pensions of any type requires careful consideration of your options, which is where firms such as Grove can help.

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Why not Get Started today to receive your free pension freedom guide. If you read the guide and would like us to look into your pension options, then simply complete the Enquiry Form at the back of the guide and post it back to us via FREEPOST.

You are under no obligation to go ahead with any of our recommendations if you don’t want to.

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Testimonials

Grove made all aspects of the pension release process very clear and precise, and kept me up to date on what stage my pension unlocking was at. Very professional at all times.

Mrs MR, Glasgow

Very satisfied from start to finish with the quick & professional service.

Mr HB, Lancaster

I found your service first class with friendly polite staff. All questions I had were answered. It was nice to be with a company that did not hard sell. Most refreshing.

Mrs JC, Warwickshire

When I made my initial enquiry via the Grove Website I received a response within 30 minutes. I realised straightaway that I was dealing with a highly professional operation. From beginning to end my case was handled with utmost speed and courtesy. I would highly recommend your services to anyone thinking of releasing their pension.

Mr CB, France

The advisor explained everything and took time to make sure I understood what he had said. Service provided prompt information clear and easy to understand. Staff polite at all times. Everything they said would happen did in time frame told.

Mrs LL, London

I would recommend your services to anyone. A good job well done. Thanks.

Mr SM, Nottingham

I wanted to release some of my pension money ( tax free ). Grove Financial were extremely helpful in every way from start to finish. No problems were encountered throughout. I Would strongly recommend them, many thanks.

Mr DS, Swindon

From the moment I went on to the website with Grove, right to the end of my pension dealings. They've acted in a very professional way with myself, I would recomend them to any person who - like me - needs much needed help on pension release. Well done to everyone at Grove, you deserve a pat on the back, thank you.

Mr KW, West Bromwich

Your staff were very helpful from the start and very professional in their approach to what is a complex field. I would recommend your services to anybody.

Mr AS, Oxford

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