Tax Free Cash

If you are age 55 or over you can have full access to Pension Funds.

If you have frozen personal pension schemes or frozen company schemes we can help you find out about all of these and once we have the full information advise you accordingly.

You may be coming up to age 55 and wish to review your pensions with the aim of taking the Tax Free Cash at age 55 but maybe do not require an income from your pension pot. This is possible and can be from existing personal pensions, SIPP, EPP or previous Final Salary Scheme, all or a combination of, it will depend upon what you have.

What you need to know

  • You were working for a company or companies in the past and were a member of their pension scheme(s) but no longer work there.
  • You may also have various Personal Pensions of various types which you no longer pay into which can be combined if beneficial.
  • You can transfer all or some of your past pensions into a new money purchase scheme.
  • You can access your Pension Fund from age 55.
  • You could get the Tax Free cash at age 55 and take no income until later
  • We can find out the current scheme benefits from Final Salary Schemes and transfer values for you. If it is beneficial to transfer these into a fund under your control we can advise and help you do this.

Speak to someone today

If you would like to speak to someone directly today,
please give Howard a call.

Available Monday - Friday 9am to 6pm

Our Transparent Process

Obtain your Signed Permission

Pensions are complicated and in our 32 years of experience need two face to face meetings at your home.

The first meeting so you know who you are dealing with, how we operate and to discuss what you have pension wise. We will run through our process and complete all of our initial paperwork at that meeting. We will also obtain all necessary permissions from you to get all the information and paperwork we require from each scheme concerned.

Agreement / Paperwork

Following the initial meeting we will contact all of your pension providers and obtain the necessary information and paperwork we require. Upon receipt we will prepare the necessary reports, receiving scheme paperwork if applicable and suitability report for our advice prior to our second meeting.

Second Meeting

At the second meeting we will run through each of your schemes and our findings and the reason to transfer or not as the case may be and complete the necessary paperwork to complete the process. Following this we will prepare and submit all applications as necessary from our office and follow this through to a conclusion keeping you up to date as we go.

Ongoing Review

Following completion of the process you will be able to log into the providers website and see your values at any point plus we will keep an eye on things as per our servicing agreement.

Be advised that we do not cold call, we do not mail shot, we do not pester people, we do not force people to make decisions they do not want to. Everyone who we see is as a result on an enquiry led by them, meaning that the potential client has made the decision to look at and in most cases transfer their Final Salary Scheme or Personal Pension, or SIPP into a new arrangement be this a new Personal Pension or Annuity or Flexi Access Drawdown arrangement. Whilst we are not order takers, the point of this declaration is that we do not force or push people into making such decisions. We still go through a lengthy advice process to check viability, attitude to risk, product and fund selection and point out all of the pitfalls and benefits either way. In some cases we do not agree and this is pointed out to clients. We do not transact insistent client business.

Contact us to discuss your finances

We specialise in all aspects of personal finance and will personally call you back to discuss your requirements and help you make the best choices for your individual circumstances.

No hidden fees. No pressure sales. Let's secure your future together.

Covid-19 Update - We can now offer remote meetings and electronic signatures. Please choose this option in the form. We can still offer in person meetings if required.

Arrange a callback

Do you have a frozen previous Personal Pension plan or multiple plans, many people do?

This is where you were paying into a personal pension plan then stopped. Maybe you then started another one and still have it or stopped that also. Many people opted out of SERPS in the 80’s and 90’s which was sold as being free at the time and these pension plans can be worth a good deal depending upon how long they were active and what funds were selected at the time. Rules for these have changed over the years which could be to your advantage now. Many people also can have past company schemes also.

It is very worthwhile looking at all of your different pension pots and seeing if it is beneficial to combine all of them or some of them and do some serious retirement planning.

Some reasons you should use us to transfer your pension(s).

  • Very Competitive Transfer Fee Structure
  • Access to our initial advice and ongoing advice review process
  • Only the best product providers used
  • Flexibility of product and fund selection
  • Extensive Industry Experience
  • We are totally Independent, Directly Authorised Advisers.
  • We are friendly and talk plain English and no waffle.
  • No pressure selling from us.

Reasons to Access your Tax Free Cash

Everyone has different needs and requirements during their lives and depending upon one’s current situation will denote what one would or would not need. For some accessing the Tax Free Cash from age 55 onwards may be beneficial, others may want to wait until later in life closer to retirement.

Accessing the fund could enable one to do sensible things with the money while others may need the money as a lifeline through being in a financial fix at the time. Others may wish to reduce their mortgage earlier, which in turn will reduce mortgage interest rate risk and may enable them to save more. Some people of course will just want the money come what may. In essence there is no one singular reason. There are many reasons why someone may want to have a Flexi Access Drawdown Plan and below are a few reasons why someone might wish to consider this option.

It has to be remembered that a pension policy or policies are meant to be for your retirement so spending the money early, from age 55, will compromise your retirement. Needless to say since the introduction of Pension Freedoms in April 2015 you are able to access not only your Tax Free Cash otherwise known as Pension Commencement Lump Sum (PCLS) from age 55 but also the fund itself. One needs to be sensible when looking at these matters, especially if the source of the fund is from a Safeguarded Benefit such as a previous opt out of SERPS or S2P transfer or even from accumulated personal pension funds or a previous transfer out that you have made from a company final salary scheme.

By advising in this area we still need to go through the full process of advice to ensure that you know what you are doing and the consequence of such action as you only get the opportunity to retire once in the real world.

The Government announced pension freedom in the 2014 Budget to start in the 2015/16 tax year. It means anyone aged 55 and over can take the whole amount as a lump sum, paying no tax on the first 25% and the rest taxed as if it were a salary at their income tax rate.

So you want to access your Tax Free Cash?

  • Do you know what the pension policy or policies are going to give you at retirement money wise?
  • What is the single or multiple pension policy that you have? Is it a personal pension or past frozen company pension? Maybe the source is a past opt out of SERPS scheme you did but have forgotten about. We can find out.
  • We need to know all aspects of each plan that you have to see if transferring them is the best thing for you.
  • If you want the Tax Free Cash, based on our discussions with you we can set up the best way for you to achieve this policy wise.
  • If you have multiple policies, depending upon values you may not want all the Tax free Cash at once so we can help sort this out for you too and stage the plans to give you maximum flexibility when getting Tax Free Cash.
  • Your new plan can be set up with your attitude to risk taken into account and will be subject to regular reviews by us and you. Existing personal pensions if not transferred can be looked at and managed by us too.
  • Have you applied for a state pension forecast yet? This is free, yes free. We can help with that.
  • If you wish to look at accessing Tax Free Cash and or getting you pensions in order then we can help.

What are the risks?

  • The value of funds can increase as well as decrease in an invested contract.
  • By Transferring the pension plans that you need to into a Flexi Access Drawdown plan you can have 25% of the value as Tax Free Cash immediately and the balance can remain invested for growth and can provided income from when you require it in the future. Drawing income and Tax Free Cash too early could impact your retirement income in later years.
  • There is no guarantee that you will be better off as a result of a pension transfer (switch) into a new personal pension.
  • Drawing income from an invested contract will deplete the fund if too much is taken and or if investment return is not sufficient to cover the income. A large market swing (seen in March 2020) could decrease your pension fund significantly, in some cases 25-30% until market recovery.
  • Smoothed funds are allocated a specific growth rate which is reviewed on a monthly and quarterly basis by the provider.
  • If the market moves up or down by 10% over a 5 day consecutive period the core fund may be adjusted in value up or down in value which would either increase or decrease the value of your holding overnight. You would still receive your specified daily growth rate and this can be altered at the fund reviews by the provider.
  • Pure Cash Fund is available but it offers no growth.
  • There is a 28 day notice period to switch out or into a smoothed fund for fund stability when fund switching.
  • There is no such notice period if you are taking income from your pension.