Not many people like to think about old age and what happens when we can no longer work, but sorting out a good pension plan is essential in order to have sufficient income when you reach retirement.
You can find your own personal pension or join the scheme that your employer might have in place either way it is better to start as early as possible, in order to maximize the amount that you can benefit from later.
Some employers even contribute to their pension scheme which is an extra benefit for us, but some employers dont have a pension scheme in place at all. Therefore it is wise to find out exactly what is and isnt available every time you join a new employer.
A pension gathers or invests over the years, so that when you reach the age of 62 as a woman and 65 as a man, you will be able to access the fund. Before that time the pension is generally locked away. But there is one way you can access your pension early if you wish to do so thanks to pension releasing.
Pension release or pension unlocking is where you can withdraw a tax-free chunk from your pension fund before you reach full retirement. However there is a restriction: you can only carry out a pension release from the age of 55 until you reach the age of 62.
Some people consider releasing a portion of their pension because they really need some extra funds, or perhaps they want to make a significant purchase and dont have easy access to money. You can find specialist companies that offer pension release, though they often charge a fee for their service. In addition, you might have to contend with a penalty fee from your pension provider for accessing your pension before it reaches maturity.
One thing to bear in mind if you are considering releasing your pension is that by removing a portion of the fund, you will have less down the line. That is because you have taken away some of your own saved money to use now. Therefore it is very wise to really consider how desperately you need the money now and whether there are other avenues available to you to prevent you from lessening the pension you will receive and the money that will provide you with an income later in life.
You can find your own personal pension or join the scheme that your employer might have in place either way it is better to start as early as possible, in order to maximize the amount that you can benefit from later.
Some employers even contribute to their pension scheme which is an extra benefit for us, but some employers dont have a pension scheme in place at all. Therefore it is wise to find out exactly what is and isnt available every time you join a new employer.
A pension gathers or invests over the years, so that when you reach the age of 62 as a woman and 65 as a man, you will be able to access the fund. Before that time the pension is generally locked away. But there is one way you can access your pension early if you wish to do so thanks to pension releasing.
Pension release or pension unlocking is where you can withdraw a tax-free chunk from your pension fund before you reach full retirement. However there is a restriction: you can only carry out a pension release from the age of 55 until you reach the age of 62.
Some people consider releasing a portion of their pension because they really need some extra funds, or perhaps they want to make a significant purchase and dont have easy access to money. You can find specialist companies that offer pension release, though they often charge a fee for their service. In addition, you might have to contend with a penalty fee from your pension provider for accessing your pension before it reaches maturity.
One thing to bear in mind if you are considering releasing your pension is that by removing a portion of the fund, you will have less down the line. That is because you have taken away some of your own saved money to use now. Therefore it is very wise to really consider how desperately you need the money now and whether there are other avenues available to you to prevent you from lessening the pension you will receive and the money that will provide you with an income later in life.
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