Can I Sell My Pension?

Yes, you can sell your pension! But there are some considerations to make before you do.

This guide covers:

• What do I need to know before I sell my pension?
• Pension selling warning signs
• Can I avoid paying tax when I sell my pension?
• Can I sell my defined benefit pension?
• Can I sell my pension if I am under 55?
• Can I sell my private pension?
• What if I think I have been mis-sold?

What To Know Before Selling Your Pension?

Most people can withdraw their whole pension in cash as soon as they reach the age of 55. If you are over the age of 55 and choose to withdraw your pension, the first 25% is usually tax-free and the rest will be taxed at your current marginal rate of income tax.

If you are under the age of 55 and you sell your pension early, you will be subjected to extremely high tax bills, as much as 55%, which means selling your pension could end up losing you money.

Recognise These Pension Selling Warning Signs

The signs below could be big indications to avoid a company when selling your pension.

• The company offers to sell your pension as an investment for which you can expect a return
• The financial advisors you speak to are pushy
• Companies offering you loopholes, cashbacks, or advances
• Cold calls, emails, or marketing material

If you have been convinced to sell your pension after dealing with a company like this, you might be eligible to make a claim.

Can I Avoid Paying Tax When I Sell My Pension?

You can take 25% of your pension free of income tax if you have the most common kind of pension – a defined contribution pension.

Can I Sell My Defined Benefit Pension?

You can, but in most cases you’ll be worse off. Transferring from a defined salary pension involves giving up the benefits that come from a final salary pension for a lump sum of cash. This can come with a number of risks. Find out more about final salary pension transfers here.

Can I Sell My Pension If I Am Under 55?

You can, but in most circumstances, it’s unadvisable because you’ll be heavily taxed (55% on the amount you withdraw). Companies that arrange early pension releases are also unregulated by the FCA (Financial Conduct Authority), which means if anything goes wrong, you’ll find it difficult to make a claim or find support.

Can I Sell My Private Pension?

You can sell your private pension, but you’ll be heavily taxed (55% on the amount you withdraw) if you sell your pension under the age of 55.

Companies that arrange early pension releases are also unregulated by the FCA (Financial Conduct Authority), which means if anything goes wrong, you’ll find it difficult to make a claim or find support.

Do You Think You Have Been A Victim Of Pension Mis-Selling?

Pension mis-selling may occur when you were advised to invest, sell, or transfer your pension into a scheme following misleading advice. If you have a feeling that you were a victim of pension mis-selling then we might be able to help.