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Down with Debt
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Are you drowning in debt? Unable to pay your bills on time or at all? Getting angry telephone calls and letters? Worried over the future?
Learn how to cope, to regain solvency and control your personal or business finances
Pensions
It is possible that over many years you have been building up a substantial pension fund through one or more pension programs either private or through a current or former employer scheme.
During times of debt crisis you may be able to unlock some of that pension earlier on by releasing early pension income or a lump sump or a combination of both.
Naturally by taking some benefits early you reduce the actual long term benefits. Only you can judge how sensible this is. It is as well to discuss this with an independent financial advisor (who may charge a fee)
General points to consider
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You need to be aged at least 50 to take benefits early, although age limits can differ with different pension funds.
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You can opt for early retirement and take a pension but still continue to work - information
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Opt for a lump sum from the pension fund
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Opt for a pension and lump sum
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If you have a several funds look at the benefits and advantages of each, perhaps any smaller one would be a target to turn into cash
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Check the terms of the fund by telephone or letter with the fund managers to see what the current early withdrawal conditions are.
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If you have an employee funded program and are still working for the company you may be limited and prohibited from earlier withdrawals.
Points to watch
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Assess the projected benefits are normal retirement and now
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How will you cope with less or no pension income (other than state pension) at normal retirement?
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Have you discussed the implications with your partner and/or family?
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Are there any health considerations to consider?
The options here are designed to assist you cope with a debt problem by helping increase income and/or releasing funds to repay high interest borrowing. It is not intended that an early pension release should be used to fund a life style supported by a risky debt problem.
Useful web sites
Free information about early pension release
Need a tax-free cash lump sum? Are you over 50 with personal or company
pensions? ...
http://www.pensionangel.co.uk/
http://www.retirement-planning-calculator.co.uk/