Unlocking your Pension Early: What are the Downsides?

It can be very tempting to release your money and or income from your pension, especially if you really need it now. However you must bear in mind that cashing in your pension early means that your income in retirement will almost certainly be considerably less than if you waited until your normal retirement age.

This means that you will have less to live on when you retire, and as such cashing in a pension early is only suitable for a limited number of people. Cashing in your pension before your normal retirement age will rarely be to your long-term advantage. You should consider all the other options before cashing in your pension early. You should ask yourself if you really need to raise extra cash? If so, could you borrow the money by way of a personal loan or remortgage? Do you have any savings or other assets you could use?

Remember most people CANNOT cash in their pensions before age 50 – that’s the law and there is nothing you can do about it.

There are a VERY few "professions" that are exempt from this age limitation but they are few and far between and include the likes of professional sportsmen such as footballers and golfers.

An Independent Annuity Adviser can help you choose which option is best for you having considered all the advantages and disadvantages. There is no obligation on your part to take the advice offered and there will be NO cost to you either in finding out how each of your options affect you now and in the future.

If you would like a totally independent adviser to contact you please click here.

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