We have the answers

Selling your pension

If you are 55 years old or older and not currently paying into or receiving your personal or old company pensions, you can release 100% as a cash lump sum – up to 25% Tax Free

Sell your pension
b3lineicon|b3icon-presentation-graph||Presentation Graph

Can I sell my pension for a cash lump sum?

If you are asking the question about selling your pension then you probably want to raise a cash lump sum from your pension fund before retirement. Technically you can’t sell your pension, however you can release cash from your pension if you are 55 years or older. You can’t access funds from your pension if you are younger than 55 years old.

If you are thinking about selling your pension, then you should consider Pension Release, also known as Pension Unlocking or even Pension Surrender. This guide refers to these when mentioning selling a pension. For the most part this is only advisable for a few people.

This is due to the fact that pensions exist to provide a pension plan member with an income during their retired life. The income might be obtained via an occupational pension scheme or a personal pension scheme. Selling your pension prior to your pensionable age would usually result in a reduced income during retirement.

If you are thinking about selling your pension,  you can take part or all of your pension as a cash lump sum. If you are 55 or over you can release up to 100% cash lump sum from your pension, the first 25% of which is tax free, and the rest of it would be taxed at your normal marginal rate of tax. Alternatively, you can leave some money in your pension to 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.

Selling your pension, whether through cashing in an occupational or personal pension, still usually gives you the option to 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 “selling your pension” will depend on several factors such as whether the money has come from a personal pension scheme or an occupational pension scheme. To a certain extent, there is much more choice in how the income will be paid from a personal pension compared with an occupational scheme. You do have the option of selling your pension, or as we should say unlock your pension, without the need to take immediate income.

Even so, selling your pension or pension release, regardless of what type of pension it is, requires careful consideration of your options, which is where firms such like Grove Pension Solutions can help you.

b3lineicon|b3icon-presentation-graph||Presentation Graph

Benefits of raising cash from your pension

Freedom from debits

Wipe out or reduce unmanageable debts by releasing some cash from your old pension to pay them off now

Fix up your home

Make essential home improvements or repairs, maybe even build that extension or do the loft conversion you need by releasing cash from your pension

Start your own business

Maybe this is now your opportunity to finally set up on your own and release money from your pension to setup your own business

Pension Transfer Consultation

Get Started Today

Free Pension Transfer Guide & Consultation
If you would like to find out if transferring your pension or taking a cash lump sum is suitable for you, we can provide a free initial Pension Transfer Consultation known as abridged advice.

Simply complete your details below, and we will send you our Pension Transfer Consultation Pack and Enquiry Form.

As part of the consultation we will look at:

  • What existing pension plans you have in place.
  • What your plans are for retirement.
  • Your needs for flexibility and control.
  • The likely cost of more in-depth advice.

"*" indicates required fields

Name*
Date of Birth*
Hidden
Hidden
Hidden
Hidden
This field is for validation purposes and should be left unchanged.

Defined Benefit Pension Transfer Warning

Transferring away from a defined benefit pension scheme means you will lose valuable guarantees.

Taking benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. This should not be seen as an easy option for raising cash.

If you release all your money from your pension early you will not have anything left to provide you with income in retirement.

When releasing cash from your pension, usually up to 25% is tax free, the balance is taxed at your marginal rate at the time and could change in the future.

Watch the FCA video explaining the expectations of financial advisers when advising you on defined benefit pension transfers.

Grove Pension Solutions Ltd is authorised and regulated by the Financial Conduct Authority (Reference number 465051).

What our clients say

Trustpilot
Loading...