OVER 50 AND WANT CASH FROM YOUR PENSIONS?
 If you're 50 or over before 5th April 2010 you will be able to access tax-free cash and/or income from your pensions without having to retire. If you're not 50 until after 5th April 2010 you'll have to wait until you're 55.
How Much Cash can I get? You can take cash from most pensions up to the maximum of 25% of the fund, though for some Company Pension Schemes you may be able to take more dependent upon your age, length of service and earnings at the time.
If you're over 60 and your pension fund is less than 1% of the Lifetime Allowance (£1.65million 2008/09) then you will be able to take the whole fund as a cash lump sum under 'triviality' rules, though the portion in excess of 25% will be taxed as income.
Does it matter what type of pension I have? If you have personal pensions or a 'money-purchase' company pension you will probably be able to get the cash now and the provider of your pension fund will offer you a 'compulsory purchase annuity' (CPA) to provide you with immediate income, though this may not fit in with your plans if you simply want to get the cash now and leave your pension until later.
If you're in a 'final salary' scheme, most haven't yet changed their rules to allow you to take the cash early and leave the pension where it is and so you'll probably have to transfer it. If you're still working for your the same company and an active member of the pension scheme, you'll need to 'opt out' of the scheme to access tax-free cash. This is rarely advisable and should only be considered as a last resort if you are in extreme financial difficulty. In either event you will need advice about this from a specialist like PSC.
Income Drawdown or Unsecured Pension For most people wanting to access tax-free cash early to pay off debts or fund a large purchase or home improvement, income is not normally required and so the ability to defer their pension indefinitely is desirable. An Income Drawdown or Unsecured Pension (USP) plan allows this.
The USP plan accepts transfers from all types of pension arrangement, including protected rights and allows you to release 25% of the total fund as cash at outset. The remaining fund is invested in tax-efficient funds offering the potential for growth so that, hopefully, you will be able to receive a bigger pension when you retire.
If you do decide you want income straight away, this can be provided up to the maximum allowed by the Government Actuary Department (GAD). This will never be less than you could obtain from an annuity and offers greater flexibility and better death benefits. The level of income can be varied between zero and the maximum in any one year and can be drawn monthly, quarterly, annually or in any combination so you have complete flexibility.
At retirement, you can continue to draw income as Unsecured Pension from the fund or you can buy an annuity with some or all of your pension fund.
How PSC can help The Policy Servicing Company will assess your circumstances and attitude to risk and research the market to recommend a suitable USP plan for you so that you can access your cash. Please be aware that the transfer process can take several weeks so if you have time constraints you should ACT NOW.
Please complete your information below and one of our specialist consultants will be in touch shortly to discuss your requirements:
Alternatively call now on 0870 190 4187 and speak to one of our specialists.
The Policy Servicing Company Ltd. is an appointed representative of Independent Investment Solutions Ltd, which is authorised and regulated by the Financial Services Authority. FSA Registration No. 224310.
Registered in England and Wales No. 04400834. Registered address: Tritton House, 14 Bath Road, Swindon SN1 4BA
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