1. Things you should know about Cash from
Pensions
Are you broke and in need of some fast cash? Why not borrow from your pension? Each year
there are hundreds of individuals that obtain cash from pensions. Some get the cash to pay
off debts while others obtain it to deal with emergencies. The amount of money that you get
depends on your personal circumstances. However, you are not allowed to withdraw more than
25%. What most people do not understand is that pension is meant to act as a safety net in old
age. Withdrawing money from your pension before retiring means you will have less money for
your upkeep when you do retire. Putting a limit on the amount that an individual can withdraw
helps ensure that some money is left for use in retirement.
It does not take long to access cash from pensions. It takes between 4 and 10 weeks for your
money to be processed. You cannot simply walk in and withdraw cash. The first thing you ought
to do is submit a request. This is done by filling in a special form. Your provider will establish if
you indeed qualify to borrow from your pension. You are only allowed to borrow if you are over
the age of 50. Moreover, you need to have a substantial amount of money in your account. The
reason a majority of people are opting for pension release has to do with the fact that it is tax
exempt. However, since you will be reducing the amount of money you have at your disposal
in your retirement, it is important that you tread carefully. Look for other ways to obtain cash.
Dipping into your pension should be a last resort. There are a number of companies that offer
pension release services. Do not opt for the first one you lay your eyes on. A good number of
them are just out to scam unsuspecting individuals. Conduct online research and compare the
services of a few prior to making your decision.
It is possible to obtain cash from pensions. However, you need to be above the age of 50 and
have saved a significant amount to cash to qualify. You can use this tax free money to pay off
debts. Your pension is your source of money in old age. As such, you should only borrow from it
when all else fails. This is because it reduces the amount you will have for your needs when you
do actually retire.