The current UK Pension Regulations change in April 2010 and the age that you can take annuity benefits will increase to age 55 from the current age 50. It is therefore very important for all those pension savers under age 55 to act quickly to unlock billions of pounds of tax-free cash from their retirement pots – or wait years before they get another chance.
The amount of tax free cash that can be taken from a pension fund before an annuity has to be purchased is 25% of the fund value. This money can come in very handy to pay off a mortgage, or provide university fees for your children.
It is usually a good idea to speak with a pension annuity specialist to get independent financial advice. They will search the open market to find you the best annuity rates. Your existing pension provider does not necessarily provide the best rates and you can shop around to get better annuity quotes.
If you do not have your own adviser you can call annuity specialist Retirement Solutions on 0800 043 6701