non-state pension schemes provide the option of
taking a tax free lump sum up to a maximum of
25 percent of the fund upon retirement.
pension holders who are aged 55 or over and who
have a sufficient amount in their funds may under
some circumstances be able to release this capital
whilst still working. This is known as pension
release, or pension unlocking. These funds, which
can be 25 percent of the existing fund or any
part thereof, can be accessed either in the form
of a tax free lump sum or of a regular taxable
income whether direct from the pension fund or
through purchasing an annuity.
capital before retirement age can be an attractive
option for anybody who needs substantial funding
for any reason, whether it is for home improvements,
a luxury family holiday, a new car or even just
to settle debts. There are many advantages to
pension release at a time when the claimant is
younger and perhaps more inclined or more able
to travel, or to invest in improving the home.
It is an age when one may have children who are
going on to further studies and who many need
a helping hand.