Questions and Answers

Am I Eligible?

Are you over 50 with money in a personal or old company pension scheme? Then you could be eligible to receive a cash lump sum (tax free) and/or income now.

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How much will I receive?

The circumstances to each pension differ, so we need to complete a thorough and detailed analysis of your pensions before we can answer this question. Once we have all the information required we can discover what you could receive in tax free cash and/or income or a combination of both.

Unlocking your pension will mean that your income will probably be considerably less than you could expect if you waited until your normal retirement date and as such is only suitable for a very limited number of people and circumstances.

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Is this a loan?

The money in your pension is yours, so this is not a loan and there are no interest payments to make.

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How much will I receive?

The circumstances to each pension differ, so we need to complete a thorough and detailed analysis of your pensions before we can answer this question. Once we have all the information required we can discover what you could receive in tax free cash and/or income or a combination of both.

Unlocking your pension will mean that your income will probably be considerably less than you could expect if you waited until your normal retirement date and as such is only suitable for a very limited number of people and circumstances.

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What costs are involved?

We will investigate your pensions and provide you with a written report which sets out our recommendation.

In the report we will provide you with a quotation detailing all the costs. For example your pension company may deduct monies as a penalty for you taking the funds now. Any pension company recommended has setting up charges that would be deducted, out of which they would pay our fees by way of commission. We may also charge you a fee but this will be agreed before we carry out any chargeable work.

As we said earlier, pension schemes are complicated and have different sets of rules and regulations therefore the amount of work we have to do varies for each person. Sometimes we need to charge an amount in addition to any payment we receive from the pension company. This would be deducted from your cash sum before it is sent to you (so you don't have to write us a cheque at any time). This will be confirmed in writing before you make any decisions.

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Do I have to retire to receive a lump sum?

In a word - No.

You can take tax free cash and or income now and continue to work although we will not be able to release funds from your current employer's pension if you are still eligible to make contributions.

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If I draw a pension as well as a lump sum, how will this be paid?

You can have your pension paid annually, half yearly, quarterly or monthly, in advance or arrears, increasing each year or remaining level in payment throughout. You can make provision in the event of your death for a pension to continue to your spouse and / or dependents.

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Will the figures I receive change?

They may, depending on what type of pension it is. If it is a money purchase arrangement, the pension fund is made up of investments (like stocks and shares, property etc), the value of which alters daily. In other words, by the time we apply for your transfer cheque the value of your fund may have changed.

If it is a final salary scheme, the trustees will give a period (generally 3 months) during which the transfer value is guaranteed to be a specific amount. If a decision to transfer has not been made and the appropriate paperwork send to the trustees within that time, the scheme will recalculate it. It may be more or less than the original amount quoted.

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What happens if I die?

If you die before any transfer takes place, the rules of your current pension scheme will still be applicable.

If a transfer takes place then any death benefits payable will depend on the rules of the new pension set up. We will supply full details at the time.

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Will this affect any of my state benefits?

It is possible that your state benefits will be affected if you access your pension. You should contact the Jobcentre Plus and Department of Work and Pensions for full details.

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So what's the catch?

You must bear in mind that releasing your pension now means, quite naturally, that your income in retirement will probably be considerably less than if you waited until your normal retirement age.

For further details see our page on any potential Pension Release catches.

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Do I have to pay tax on the money?

The lump sum payment is tax free. However any income you receive is viewed as part of your regular income by the HM Revenue and Customs, which means that you may have to pay income tax on it depending on your personal circumstances. However tax rules may change in the future.

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Do I have to pay monthly premiums to the policy?

No in fact you can't pay any more into it.

The purpose of this is for you to look at being able to take your money now as either a lump sum, income or a combination of both.

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Can I continue to work whilst taking early benefits?

In most cases, yes.

You can draw on your pensions once you reach 50 and continue to work. Many people continue to work even though they are drawing their State Pension and are over retirement age.

The HRC will include any pension payments you receive as part of your income when working out how much tax you owe. This is normal and will happen whether you access your pension now or later.

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Can I sell my pension?

UK law prevents you from selling a pension fund. Pension Unlocking is simply a case of you taking money out of a fund that is already yours.

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Would you like more information on pension release?

Braemar have a team of experts who will always identify the maximum benefits you could receive and advise you on your best course of action.

Simply complete the Free No Obligation Information Pack form on the right and you will be contacted by a dedicated pension release consultant.