IMPORTANT: PLEASE READ
Accessing your pension before your normal retirement age (currently 55, rising to 57 in 2028) is a major financial decision with long-term consequences. It may significantly reduce your retirement income and could result in a large tax bill. We strongly recommend you seek free, impartial guidance before proceeding.
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Key Pension Release Risks
Tax Implications: Typically, only 25% of your pension pot is tax-free. The remaining 75% is subject to Income Tax at your highest marginal rate.
Benefit Eligibility: Taking money from your pension may affect your eligibility for means-tested state benefits.
Sustainability: Withdrawing funds early or at a high rate increases the risk of your pension pot running out during your lifetime.
Irreversibility: Once you have accessed your pension funds, you generally cannot reverse the decision or pay the money back in under the same tax advantages.
Government-Backed Assistance
Before making a decision, you should access free, impartial guidance from the Money and Pensions Service (MaPS).
MoneyHelper: Provides guides on all aspects of money and pensions. Visit MoneyHelper.
Pension Wise: If you are over 50, you are entitled to a free specialist appointment to discuss your defined contribution pension options. Book via Pension Wise.