We help you to arrange a loan and you repay it at age 55 from the proceeds of your UK pension. You (the borrower) use the 25% tax free cash to settle the outstanding balance of the loan at age 55.
- You are under 55 years old?
- You have an asset in the form of a UK pension?
- Your asset has a current value of over £150,000?
- You have a financial goal you are unable to achieve?
- You are prepared to take financial planning seriously?
Please complete the form now to find out more!
The loan arrangement is guided by similar principles that have been used by banks and building societies granting pension mortgages for many years.
What’s the process?
- Goals based financial planning – You need to raise capital to achieve a goal that is going help improve your current overall financial circumstances. E.g. Start a business, invest in a business or opportunity, invest in your home or other asset, reduce the current cost of borrowing etc. A free & confidential conversation will quickly establish whether we can help.
- Pension Valuation – We will ask an Independent Financial Advisor (IFA) to obtain a true, current valuation of your pension from the institution it is held with. This will confirm the pension is valued at over £150,000.
- Due Diligence – You will need to complete forms for the IFA to be able to review your pension and overall situation. We will be available to help you to answer any questions.
- The Pension Review – Subject to a satisfactory valuation, you will then be asked by the IFA to undertake a full review of your pension. He will advise on any improvements that may be possible, including comparing charging structures and addressing investment strategies in line with your risk profile.
- Responsibility & Commitment – If the review is completed successfully, you will be asked to give the necessary assurances to a lender by completing the required paper work which includes various legal undertakings.
- The Loan – The loan amount is calculated by understanding your personal circumstances including, your planning goals, what is affordable, the current pension value & the projected pension value at retirement.
- Future Reviews – It’s important to stay on track and you will receive annual statements detailing your current position. If you need more information at any point you can contact the trustee directly.
Once you have submitted your enquiry form we will be happy to discuss your specific details and give you an in principle decision that is subject to the procedure & necessary checks detailed above.
Our “in it together” philosophy, between lender & borrower means that there is a common interest in ensuring the underlying asset is managed optimally between the loan date & the maturity date.
Pension Release under 55
Many people with a need for money are turning to their pension asset to see how much they can potentially borrow prior to the earliest possible retirement age of 55 years.
- Using the pension to repay outstanding capital and not just a mortgage at retirement is a growth area.
- You can repay the loan early or use your 25% tax free cash at retirement to settle the balance.
- With the appropriate documentation, it’s acceptable to the lender as long as sufficient capital is available to repay your loan at retirement.
- Lending responsibly means knowing you the customer i.e. having knowledge about how you, the borrower intend to service & repay the loan.
- This is often referred to as an extremely tax efficient way of settling a debt, loan or mortgage.
- You can continue to make contributions to your pension, enjoy the generous tax breaks and build your retirement funds.
Did you know that previously, people looked to find ways to pension release under 50? Then the earliest retirement age was extended to 55 and it will be moved again to 57 from 2028?
Can I sell my pension?
Prior to age 55 it is not possible to sell your pension but it may be possible for you to raise capital in other ways.
The pension loan arrangement discussed in detail here is one potential alternative, for more information and to receive a no obligation call back, please complete the form at the top of this page.
Risks & Warnings:
When relying on stock market related performance, investments in your pension & the corresponding values can go down as well as up.
Your pension investment will not be guaranteed & only cautious rates of return should be relied upon when doing projections.
If your pension investment has insufficient funds to settle the loan at retirement, you will be personally liable for the shortfall.
When planning, remember that using your pension to settle a loan at retirement will greatly reduce or limit the amount of future pension benefits available to you.
When solely relying on your pension as a means of settling the loan balance, the earliest repayment date is your 55th birthday.
If interest rates rise, you could end up owing & repaying significantly more.
You may need to take other financial planning actions to ensure you have adequate provisions in retirement.
Make sure that the advice you receive is suitable & appropriate for your current personal circumstances.
Unemployment & illness can mean that premiums need to cease for a period and can lead to deficient pension fund values.
If you had already promised the proceeds of your pension at retirement to another lender or financial institution you may be breaking the law.
Take advice from suitable qualified individuals including Independent Financial Advisors (IFA), tax planners, accountants & solicitors.
Have regular financial planning reviews in place.
Pay close attention to potentially variable factors like interest rates & your pension valuations.
Keep to a well thought-out investment strategy & keep your contributions up to date.
Always inform your lender of changes in your personal circumstances, especially if it affects your ability to maintain a repayment schedule.
Mortgages & loans can be settled from other monies (savings & investments) thus freeing your pension for retirement.
For more specific information regarding authorised & unauthorised payments, including the various penalties please follow this link:
For an independent definition of the term pension mortgage please visit:
Another definition is available via the following link:
The following article shows that you are not alone when looking to use your pension to help with your strategic financial planning:
** Authorised & Unauthorised Pension Payments
It is vital that your pension remains fully invested until you reach an allowable retirement age i.e. 55 years or older (57 from 2028).
Taking your 25% tax free cash at retirement age is defined as an AUTHORISED payment because it meets the payment conditions within the legislation and therefore cannot be unauthorised.
Please be careful if anyone is suggesting taking a payment from your pension prior to the designated retirement age of 55 because it will probably be classed as unauthorised. Section 161 of the Finance Act states that a payment that is received in connection with a pension fund investment is unauthorised and subject to a 55% tax .
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By submitting your enquiry for a loan or any type of pension related advance today you will speed up the process. Simply take the next step by completing the pension enquiry form.