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.
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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The people who dealt with my case were very helpful & non judgmental about the reasons why I wanted the case payout. Everything was explained to me thoroughly and the risks highlighted. Although this course of action is not for everyone, it has been a lifesaver for me. Thank You.
I was in a situation and found that Grove Pension Release came to my rescue and appreciate everything they did for me.
I did not think such a good service existed but it does. Grove customer service really does look after the customer.
A very clear, understandable and efficient service. All staff were friendly and knowledgeable.
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.
The Grove Pension Release company are very helpful who go through every aspect step by step so that you understand. ... The service you get is A1 and the staff are polite and helpful in every way. The response and service I got was second to none.
You were the only company to explain it (advice) to me in a way I could understand ... I contacted several IFA's and they were all very unhelpful. ... I am delighted I chose Grove, very professional, polite company. Thanks so much!
This was the best decision I have made. I cannot express how helpful Grove Pension Solutions were. ... Their staff are very knowledgeable, professional and friendly, not something other companies offer these days.
I would recommend your services to anyone. A good job well done. Thanks.
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