Members of the public are continually being targeted by companies encouraging them to tap into their pension and release a percentage of the pot early.
Some of these companies are even sending text messages to people over 55 encouraging them to access a percentage of their pension calling them ‘pension liberation schemes’. These schemes are especially tempting to those in financial difficulty or those businesses who are desperately seeking working capital.
The costs of “liberating” your pension can be astronomical!!!
The pension liberation companies can charge up to 20% for liberating your pension fund.
In addition, H M Revenue and Customs may be entitled to take up to 70% of the amount liberated. There is a tax incentive to save in a pension, but the tax man gives nothing away for free and so there are tax rules about when and how you can take the pension.
Many of these schemes are a sham and our advice to anybody considering taking a lump sum out of their pension early is to take financial advice from a trusted professional.
It is important for anybody facing financial difficulties, whether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.
To take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.
Redman Nichols Butler has had a Scunthorpe office for nearly three years now and specialises in advising SME businesses in Scunthorpe, Grimsby and Louth. The Redman Nichols Butler Scunthorpe office address is Normanby Gateway Lysaghts Way, Scunthorpe, DN15 9YG.