How long will it take?

The timescales involved are largely dependant upon how long your pension provider takes to provide the information we require and to process your application for payment. In most cases this can take several months.

If you are in ill health or suffering from severe financial hardship, the scheme will require evidence of this when calculating what benefits you may be entitled to. This can involve submission of medical evidence, medical reports from your GP and in some cases an assessment by a independent medical practitioner appointed by the scheme.

Obtaining and collating the relevant evidence can increase the timescales involved significantly. However if ill health or severe financial hardship can be proven, the benefits payable are normally higher than under standard early voluntary retirement.

Will I have to pay tax?

Any lump sum is normally payable free of tax. Any income taken from your pension would be taxable at your marginal rate. Any tax would be deducted by the pension scheme at source.

Important Information

Taking any of your pension benefits early is likely to reduce your income at retirement. Therefore, pension release is only suitable for a very limited number of people and circumstances and should not be seen as an easy option for raising cash. This is because a pension is designed to provide you with benefits when you retire. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. The Financial Services Authority does not regulate some forms of tax advice, secured loans, unsecured loans, debt management and Wills. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.