Pension is money an individual receives after retirement for further livelihood. Every person working has a right to get pension after retirement and so it is. It is given to you monthly according to the money being stated. But now from 2015 a new rule has came forward regarding pension is “selling your pension”. This rule came into effect on April 2015 which stated that any person getting pension can take more of the amount to be taken. It means unlocking a pension has been made easier and better so that person in need of money can take the amount he/ she needs. Changes are such that from age 55 onwards you can use as much of your pension money as you like, when you want it. It is as per rule so no issue will arise anytime. But only one thing is needed to remember that beside this benefit the truth is that you can only get access to your pension pot when you turn 55 years of age. Some take it before age 55 in case their health is not ok or if any other issue. This clearly means that ‘pension liberators’, who state that you can gain access to your pension money very soon, are trying to get you to break the law. How much beneficiary it is doesn’t know but yes it is mandatory.
Unlocking a pension is a good idea but it is also important that you should understand who real money givers are and who are just scams thus beware of scams out there waiting to cheat you. Thus before going further to this be clear with some points like beware of pension scams, normal retirement age, early pension release warning, deciding if unlocking your pension is right for you and lastly take advice from two or three well experienced person whether it is right or wrong. The age at which most people start to take money from their pension schemes is decided according to the rules of the particular workplace pension scheme, personal or stakeholder pensions, the date chosen when the pension begin. Approximate age should be 60 to 65 but it is not compulsory so it can be lower too. According to rule, you are permitted to start withdrawing money from your pensions from age 55 but you should know that all schemes will not let you do this. Due to this situation may come when you have to transfer to different scheme before you can take and use your money. Before going through all this process just talk once to your pensions administrator, your employer or trustee to find out your options you can use and unlocking a pension can be done.
So some clear advice would be that think many times before deciding to take money out from your pension scheme earlier, though it is legal or not. You will almost definitely receive less than if you had left your pension invested, and your retirement could become quite difficult due to less money. This process is only suitable for a small number of individuals and only in some major cases, like if your health is not good or in poor condition, reducing the time you expect to live. Thus it’s quite useful but thinking twice is not bad too.
