By law you can release cash from your pension early – Tax Free!

You are entitled by law to release up to 25% of your pension tax free and your remaining pension fund stays invested until you retire allowing you to use the cash released for any purpose.

Just think, releasing tax free cash from your pension early means you could raise capital for major improvements or much needed repairs to your home; help a loved one secure their first home, move up the property ladder or fund their further education or like Geoff and Maureen in our case story you could clear a loan and reinvest those loan payments into your pension. 

It’s perfectly legal to release funds from your pension if you are;

  • Aged 55 or over
  • NOT taking income from a pension
  • Your total pension fund(s) is £25,000 or above
  • You have a personal pension or company pension*
  • Your pension fund(s) are from UK pension providers
  • You are looking to raise a cash lump sum, an income or both
  • *Your fund is NOT from a State pension

We offer a simple FREE no obligation application and fund valuation service to help you understand if releasing funds from your pension is right for you. 

We only use pension providers who are UK based and Financial Conduct Authority regulated (FCA), which means you are protected under UK financial law.

We are an FCA authorised firm, which means you will have access to the Financial Ombudsman Service or Financial Services Compensation Scheme should you feel you need their services.

We operate the Treating Customers Fairly policy, which is a service standard set by the FCA”.

Geoff & Maureen's story:

Geoff, 59, and Maureen, 57, took out a £9,500 loan for a new bathroom. Their repayments of £230 a month were manageable but with 17%APR* over 5 years their interest on that loan would be £4,300.

With Braemar's help, Geoff released £9,500 from his pension tax free to pay off the loan and then invested the £230 per month back into his pension. With the loan paid off and 5% growth** in his pension plus the monthly investment of £230, his pension fund will grow by £18,700 after 5 years.

Geoff says: "Braemar explained the whole process and the application was quick and easy. Paying off the loan for the new bathroom and reinvesting those payments into my pension means I haven't lost anything when I do retire, in fact I've gained."

Important facts about this case study:

  • Up to 25% of a pension can be released tax free, so in this example a private pension would need to be worth at least £38,000.
  • *Some people may be paying much higher interest rates.
  • ** Growth on a pension depends on the type of pension, charges, contribution level, tax relief and rate.
  • Rates are for illustration purposes only.
  • You may get back less than you invested.
  • Investments can fall as well as rise.
  • Tax reliefs and regulation can change without notice.
  • Independent financial advice is essential
  • Case study names have been changed.

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Important consideration

It is very important that you do not consider releasing funds from your pension early to raise cash unless you understand that it could reduce your pension income in retirement and may not be suitable for your circumstances.

*Pension Release does not apply to State Pensions.