Pension Planning and Capital Release.
A client in need of capital following redundancy was able to utilise his existing personal pension funds to release a proportion of his Tax Free Cash entitlement without having to draw income.
Currently anyone over the age of 50 can draw on their pension benefits, however this changes in 2010 to 55.
We were able to do this by utilising the current Pension Drawdown rules. By consolidating his two existing personal pensions we are able to give him access to up to 25% of their value.
This case highlights the need to be aware of the value of your pension fund and the options available.