What are your pension surrender options?
Pension Surrender at 55+
If you are 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*
Guide to Pension Surrender
Pension Surrender is often used when people want to receive a cash lump sum of money from their pension early. Obtaining cash from your pension via pension surrender is for the most part not advisable. Pension fund proceeds, regardless of whether they are occupational scheme or personal pension scheme funds, are intended to provide plan members with an income after they have retired, so to surrender pension benefits early would usually reduce the eventual retirement income.
Pension Surrender normally gives you 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 people cash in pensions via pension surrender from an occupational pension scheme or personal pension scheme, 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 will depend on several factors including where the money comes from – a personal pension or occupational scheme. To a certain extent you have much more choice about how the income can be paid from a personal pension compared with an occupational scheme. You have the option to surrender pension benefits or unlock pension cash sums without the need to take immediate income.
Even so, to release pension benefits through pension surrender, from any type of scheme, you need to consider your options thoroughly, which is where firms such as Grove can help.
Pension Surrender Resources
If you are considering surrendering your pension you will find some of these guides useful:
- Pension Release – all you need to know about pension release.
- Can I cash in my Pension at 55? – guide on the type of pensions you can cash in at 55+.
- Pension Freedom Rules – rules to consider before surrendering you pension.
This service only applies to pensions in the UK.
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.
Pension Surrender Advice
It’s free to find out your options
Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority.
We are financial advisers specialising in helping people transfer or cash in their pensions early and have been doing this for many years now, long before the Pension Freedom changes came into effect.
We have provided professional advice to thousands of people over the years.
Our service allows you to evaluate your Pension Freedom options without paying a penny. It’s only if you decide to go ahead with releasing all or part of your pension pot that you pay a fee. You are under no obligation to go ahead if you don’t want to.
IT'S FREE TO KNOW YOUR OPTIONS
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I found your service to be very professional. The people I had contact with were very patient and understanding.
I found Grove Financial advice helpful and informative in all stages of the (Pension Release) process, I would recommend the to any friends and family who needed impartial advice on financial matters.
I did not think such a good service existed but it does. Grove customer service really does look after the customer.
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!
Thoroughly recommended, nothing to much trouble, always there to give advice, always dealt with the same person at all times. Very glad that I used this company.
Definitely I would recommend Grove Pension Release to anyone as they give personal and friendly help to people who need help, where other companies don’t.
The advice I received was excellent. Each time I didn’t understand something I made a phone call. I was never felt to feel like a nuisance (which I know I was!) and everything was simply explained to me. Thank you – what a wonderful team!
I found Grove to be very professional people and very knowledgeable. The way they dealt with my pension release was second to none.
Your staff gave me so much relief and I would like it known that your staff are helpful, understanding, and make the whole process easier than I thought it would be. I am so so happy to have put this in your company’s hands.
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