Is Pension Release a Good Choice?
pension release might seem like a good option for those aged over 55 and still working, but is it really a wise choice? People can unlock 25% of their pension fund, be them personal or occupational, and they can continue contributing to the scheme and working. This of course will have an impact on the income they are going to get in their retirement years. If you consider pension transfer, for instance, you have to carefully analyze the risks and the benefits. The same analysis like in case of pension switch should also be performed when it comes to pension release. You have to be informed about the rules of your pension scheme and you also have to be over 55 years old. Before making your final decision, do some calculations to see if the income that you will receive after retiring is going to cover for your needs. If the answer is negative, then pension release is not an option for you. It is not at all recommended to use this method for financing short term needs because the disadvantages on the long run might outcome the benefits. It is wise to ask for the opinion of a financial advisor in order to find out if pension release is indeed a suitable option. You will fully understand the implications of what you are about to do and you will make a decision you won’t regret.
