Early Pension Release
John has an old pension from when he used to work for his local council; it is a Local Government Pension, which has a Cash Equivalent Transfer Value of £40,000.
- John Smith is employed on a salary of £24,000 a year
- Married to Joan who works part time on a salary of £7,000 a year
- John is aged 57
- No dependents
- No savings
These are extremely good pensions with guarantees of what they will pay at retirement and normally John wouldn’t even consider taking benefits from it early, however, John is behind on his mortgage and owes the company £4,000. He also has a bank loan of £5,000 and an overdraft of £1,000.
All these debts came about because he was made redundant over a year ago and he has only just found new employment. He and his wife did have some savings but these have all been used up. He is making payments on his mortgage and bank loan now but the mortgage company are saying that if he doesn’t pay back his arrears they will reposes his house.
John and Joan have tried getting a consolidation loan but can’t because they have a bad credit rating; they’ve even spoken to Citizens Advice but they couldn’t help. None of their friends or family are able to help them either and every bit of money they earn each month goes out again just on living. It’s not as if they have luxuries they spend their money on that they could cut back on.
They have basically tried every avenue possible to try and solve their problem and it is only because they have exhausted every other option that they are now considering using John’s pension.
John is unable to take benefits early direct from his Local Government Pension Scheme so he is going to transfer it into a Personal Pension. He is then able to release 25% of the transfer value as a Tax Free Cash Sum, which is £10,000, leaving the rest of the money invested in his Personal Pension to take as an income when he eventually retires.
Transferring his pension means he has now lost all the very valuable benefits and guarantees that he would have got with his Local Government Pension Scheme and there are charges and costs involved with the advice he has been given and to set up the new plan.
However, John will still get a pension when he retires, albeit smaller than he would have otherwise got, and he and his wife can stay in their home and clear all their debts.
He made sure he fully understood what guarantees he was giving up and all the costs, charges and risks he would be taking by going ahead with Early Pension Release, this enabled him to make an informed decision.
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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.
I looked around the internet for some time, all I looked at was very confusing to me. I then found Grove Financial and found it very easy to read and take in. I sent an email with a question to see the response. I had a perfect response in plain english. I was very happy to carry on with the excellent personal service.
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.
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.
Very helpful & informative staff who understood my situation & why I had to release funds. I was informed that it could be a bad decision to proceed & was put under pressure not to, which doesn’t make sense as Grove wouldn’t make any money.
The whole experience was comprehensive and informative. I was never put under pressure, and the whole procedure was conducted professional, with feedback. Everything that I was told would be done was done in the time frame that I was advised of.
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 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.
I thought the process of pension release would be difficult but was made easy to understand by the very helpful staff at Grove.
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