Can I cash in a Defined
Benefit Pension?

Case Study: Cashing in a National Grid Defined Benefit Pension

Can I cash in a defined benefit pension?

If you are aged 55+ and not currently paying into or receiving your defined benefit pension,
you can cash in 100% of your pension early as a cash lump sum – up to 25% Tax Free*

Case Study: Can I cash in a Defined Benefit Pension?

As part of our Defined benefit pension transfer advice this case study takes a look at cashing in a National Grid Defined Benefit Pension Scheme. The National Grid Pension Scheme have been providing generous transfer values.

If you have been offered a enhanced transfer values and incentives to transfer out of your old employers defined benefit pension scheme, the following information will be of interest to you.


The National Grid Pension Scheme is known as a Defined Benefit pension scheme and is therefore an extremely good pension with valuable benefits.

  • When you reach retirement age 65, the National Grid scheme will pay you a regular pension income for the rest of your life (subject to Income Tax), which will increase each year. You may have the option of receiving a reduced pension in exchange for a tax free lump sum.
  • If you die at any time only a ‘financial dependent’ such as a spouse would receive any money back and even then it will only be a fraction of the pension income you would have received.

MrS L from London

Mrs L, age 55 from London, needed to clear debts in order to save several hundred pounds a month in repayments; these including credit cards and a loan. Her plan was to semi-retire by reducing her working hours and then fully retire in the next 4-5 years. She also wanted to give her daughter an amount towards a kitchen for her new home.

She was unable to take her benefits direct from the National Grid scheme as she was not yet 65, however, by transferring it to a personal pension she was initially able to release a lump sum of £36,000, which was enough to do everything that she wanted to do whilst leaving a further £183,000 invested in the personal pension for use later on.

By leaving the rest invested she felt safe in the knowledge her money could pass on to both her partner and even her daughter if anything was to happen to her AND because of the generous transfer value offered by the scheme, even with a ‘cautious’ type of investment the eventual retirement benefits will probably not suffer as a result of moving her pension and releasing part of her lump sum early.

*25% of the fund value is tax free; the balance would be taxed at your marginal rate depending on your circumstances and could be subject to change in the future.

**The beneficiary would be taxed at their marginal rate depending on their circumstances at the time of death.


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.

Need advice on cashing in a defined benefit pension?

Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority.

We specialise solely in Pension Transfer and Pension Release retirement services.

We were established in 2007 so have many years of experience successfully helping 1000’s of individuals. Some of them we advised to transfer their pensions and some of them we advised to leave their pensions where they are and not transfer them.

So why not Get Started Today and receive your free Information Pack.



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I wanted to release some of my pension money ( tax free ). Grove Financial were extremely helpful in every way from start to finish. No problems were encountered throughout. I Would strongly recommend them, many thanks.

Mr DS, Swindon

Found your service to be very professional. Your staff were polite and friendly ready to explain / clarify any query I had relating to release of my pension fund(s). Even went the ‘extra mile’ to update me via phone and text.

Miss RA, Kent

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.

Mr MD, Plymouth

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.

Mr PB, Chelmsford

I cannot praise your company enough. From the initial enquiry form to completion the whole procedure was absolutely first rate. Your staff are a complete credit to your company and it is impossible for me to find anything further to add. Superb!!

Mr RM, Ashendon

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.

Mrs MR, Glasgow

….what can I say. This company has been a breath of fresh air. I fully recommend any one considering any form of financial planning to contact Grove Pension Release. In plain English, those people are “NOT” cowboys. Thank you for all your help.

Mr EG, Bedford

I thought the process of pension release would be difficult but was made easy to understand by the very helpful staff at Grove.

Mrs KS, Runcorn

At all stages I was completely satisfied with the help I got. At every stage I was made aware of any pro’s and con’s of pension release.

Mr JE, Maidstone


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