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Selling your pension
If you are 55 years old or older, with a Flexible Personal Pension, you can normally cash this in by taking up to 100% as a single lump sum – up to 25% Tax Free
If you have a Defined Benefit pension or similar safeguarded scheme, you can transfer this to a Flexible Personal Pension to take some, or even all of this, as a lump sum.
Can I sell my pension for a cash lump sum?
Whilst you cannot ‘sell’ a UK pension, the terms Pension Release, Pension Unlocking and Pension Surrender refer to the process of flexibly accessing your pension. Most Defined Benefit / Company Pensions have limited, if any, flexible options, but if your pension is worth more than £30,000 then, with regulated advice, you can transfer your old employer’s scheme to a flexible Personal Pension.
However, for the most part this is only advisable for a relatively small proportion of people. This is because for most people, a pension is principally there to ensure that you have enough income in retirement – even if the pension is a relatively small ‘pot’. Cashing in any pension will inevitably lead to a reduction in that income and this could have serious consequences.
But if you are thinking about flexibly accessing your pension, once you are in the right type of arrangement, you can take all of your pension as a cash lump sum, with 25% tax free and the rest taxed as earned income at your highest marginal rate of income tax. Because of the longer-term retirement income considerations, and short-term tax implications, for most people considering this route, the best option is to take less than 100% of the fund, and leave the rest invested to still provide an income in retirement.
Please note that the tax treatment would depend upon your personal circumstances and may be subject to change in the future. Whether you are considering accessing all, or even just part of your pension, you should carefully consider your options, which is where firms such like Grove Pension Solutions can help you.
Benefits of raising cash from your pension
Freedom from debits
Clear a mortgage or other debts entirely by utilising your pension. This might be in preparation for retirement, or simply to reduce your outgoings and relieve the burden of a monthly payment.
Property purchase / repairs
Invest in your business
Pension Transfer Consultation
Get Started Today
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.
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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
First I want to thank both you and all your staff for helping us through this difficult decision period. You usually only retire once and so are novices at all the procedures.
Thank you for your understanding, taking us through this process so we finally understood what was needed. I will be happy to recommend you to all our friends and family should they ever need these services.
Once again you have our sincere thank
I cannot thank Grove Pension Solutions Ltd enough! From the outset to completion, my mind has been put at rest throughout. I had to make a very difficult decision with regard my pension recently due to ill-health / a terminal illness.
It was a tough and lengthy process from start to finish, however, the staff I spoke with were wonderful, in particular, Gina. They have professionalism to a T. Friendly, courteous, knowledgeable and above all, understanding.
Grove Pension Solutions assisted in moving my company pension to a personal pension, which will allow me to retire 7 years earlier than planned.
Since the FCA have made this option very difficult, Grove made the process very swift and smooth, with true professionalism throughout the process. The communication was excellent at all times, and there was always someone to answer a question if it arose.
I would highly recommend Grove Pension Solutions for your personal pension requirements.
Grove managed the transfer of my pension swiftly and kept me in touch with the process at all times. On occasions when I telephoned with questions they were patient, and regardless of who I spoke to, the staff were knowledgeable, friendly and reassuring. Grove Pension Solutions went above and beyond to complete my transfer and I cannot thank them enough.
Nothing is too much trouble, everything was explained in plain English and I was asked several times if I wanted to go through with any information again or any questions , all staff were professional and completely “knew their stuff” they returned calls when promised such a pleasure to do business with a very big thank you
In the final stages of my transfer, throughout the process the service has been very professional, regular updates by phone and email, the advisors are very friendly and explain the process in an easy to understand way. Have recommended to two other people already, wouldn't have any hesitation to use Grove Pension Solutions again, 10/10 thank you.