“Can I sell my pension?” The simple answer is “No!” But there may be other options available rather than selling a pension, if you want to raise cash from your pension fund. Before we explain those options further down this page, there is a warning…
If you want to sell your pension, it is probably because you need cash urgently and have been unable to raise it from “conventional” lenders. You are not alone – selling a pension, pension release, pension loans, and “cash in pension” schemes are becoming more and more in demand these days. But this increased demand from people wanting to release cash from a pension has meant that some unscrupulous and “shady” companies are trying to exploit people who are in urgent need.
The Pensions Regulator (TPR), HM Revenue and Customs (HMRC), and the Financial Services Authority (FSA) have released warnings recently about “Pension Liquidation Scams”. You can read more here – http://www.fsa.gov.uk/Pages/consumerinformation/scamsandswindles/latest/early-release-pension-schemes.shtml
We should mention that we are an “introducer” to pension loans and pension release companies. We scour the market to find reliable and legitimate schemes that can help you if you want to get cash from a UK pension. If you fill in our form at the top-right of this page, we will pass your enquiry to a company that is likely to be able to help (depending on the amount in your current pension, and the amount of cash you want). We completely agree with the recent warnings from the regulators. We only deal with companies who are based in the UK – so that they are subject to UK legal and financial regulations. Where possible we also seek written evidence from the companies we introduce to that their products/services have support from UK legal and tax specialists including leading Barrister or QC opinion and that of Chartered Tax Accountants who specialise in such matters. We are unable to provide any guarantee that such arrangements will not be scrutinised by HMRC. However the principle company we introduce customers to does provide full legal expenses cover should this occur.
You should also bear in mind that any money you “borrow” or release from your pension may not then be available to you when you come to retire. When you talk to companies about these kind of schemes be sure to check how it may affect your future pension, and the income you may have in retirement. And it is also a good idea to speak to an Independent Financial Adviser.
Please note that this website does not offer financial advice. In this article we attempt to tell you of some of the options and potential pitfalls if you are considering “selling a pension”. We have made every effort to make this information accurate at the time of writing, but it is no substitute for legal or financial advice. If you have any doubts, please consult a qualified Independent Financial Adviser (IFA) before making decisions that may affect your future pension income.
“Can I Sell My Pension?” – No, you can’t!
Firstly we should point out that in the UK you cannot legally sell your pension to someone else. So be wary of companies offering to “buy your pension”. It could be that they are just using those words in their marketing materials, to promote their pension loan or pension release schemes, but you may feel that they are guilty of misleading advertising.
“Sell my Pension” – Alternatives for releasing cash
So, if you can’t sell your pension what are the alternatives for getting cash from a pension? There are lots of companies offering pension loans, pension release, cash in pension, or “pension fund advance” services. But from our research, there are two main options, depending on how much money you have in your pension fund (or in a combination of pension funds) and how much cash you want to release –
- Pension transfer
- Pension release
If you have between £15,000 and £30,000 in your current pension fund (or a combination of smaller “pension pots”) you will probably be offered a pension transfer, of one kind or another. These usually allow you to release between 15% and 40% of the current value of your pension.
If you have over £30,000 in your current pension, another option is available. We know of one scheme that allows you to release up to 90% of your pension fund. This is a product that originated in 2005, has an excellent track record, and is fully disclosed to HMRC. It is also backed by legal opinion from a leading QC, to indicate that it complies with all current UK legislation.
If you would like to find out more about what options are available for your circumstances, please fill in the form at the top-right of this page, to book a free, confidential phone call.