Pension Unlocking or Pension Release is the process to take out money from your pension scheme prior to your retirement age. Some of the processes of obtaining funds from pension scheme are legal, but not all. If you are above 55 years of age you are eligible for accessing the money in pension schemes legally. But people under 55 are not considered legal to access the pension funds, until they have any poor health conditions. Although it is counterproductive to consider opting for pension unlocking scheme prior to reaching retirement age, but there are many valid reasons for such strategy.
Instant Access to Cash
Due to many unforeseen circumstances a person may be forced for early retirement and this prevents them to have access to cash and remain self-reliant. So, many people consider Pension Release has a viable option rather than relying on family members and Governments for financial assistance.
With early Pension Release you can get instant access to cash which you can invest in other financial vehicles that guarantee better returns compared to your present pension schemes.
To make the retirement years enjoyable and pleasurable one need to ensure that all the debts are cleared off over their head. Being able to release funds from pension scheme to clear off the high-interest debts is another advantage of such schemes.
You are no longer required to leave your funds until the retirement years. You also don’t have to convert your pension pot into an annuity. You can simply opt for Pension Release scheme and spend or invest in other vehicles that can guarantee higher returns and best profits compared to annuity and pensions schemes.
Pension Release gives the consumer with complete control over how their money is used. They can place the money in SIPP or other investment classes for better returns and profits.