Can I sell my pension?

Selling your pension might seem like an easy way to access cash, but it’s important to understand the risks before making a decision. From potential tax implications to long-term financial impact, there’s a lot to consider.

In this guide, we’ll break down what you need to know before selling your pension. If you think you’ve been misled or given bad advice, call us today for 100% risk-free advice.

This guide covers:

• What do I need to know before I sell my pension?
• What are the 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 do I need to know before selling my pension?

Before you sell your pension, it’s important to understand the tax implications.

If you’re over 55, you can usually take 25% of your pension tax-free, while the rest will be taxed at your current income rate.

If you’re under 55, withdrawing early could mean paying up to 55% in tax. This could leave you with a lot less than expected and have a real impact on your retirement.

What are the pension selling warning signs?

Unfortunately, not all companies have your best interests in mind when selling your pension. Watch out for these warning signs:

• Big, unrealistic promises about rapid high returns
• Financial advisors that pressure you for quick decisions
• Companies offering loopholes, cashback or advances
• Cold calls, emails, or other marketing materials

If you have been convinced to sell your pension after dealing with a company like this, you might be eligible to make a claim. This kind of misleading advice isn’t just limited to pensions – it’s common in mis-sold investments too.

Can I avoid paying tax when I sell my pension?

If you’re over 55, you can take 25% of your pension tax-free, but any additional withdrawals will be taxed as income. It’s a good idea to plan how you take your pension to avoid a big tax bill. Withdrawing too much at once could push you into a higher tax bracket, leaving you with less than you planned.

Can I sell my Defined Benefit Pension?

You can sell or transfer a defined benefit pension, but it’s not always a great idea. These pensions offer a guaranteed income for life, which is usually worth more than a lump sum. Giving that up means you could be taking on a lot more financial risk in the future.

If you’ve been encouraged to transfer your pension and are unsure about the advice, you should check if you were mis-sold. We’ve helped hundreds of people around the country reclaim their hard-earned money – reach out today to see if you have a valid claim.

At Spencer Churchill Claims Advice, we specialise in handling financial claims like your mis-sold pension with the care and expertise you deserve. If you’ve been poorly advised about selling or transferring your pension, our team is here to fight for the compensation you deserve. Get in touch now for a no-obligation chat.

Can I sell my pension if I am under 55?

Yes, you can sell your pension before 55, but it’s usually not worth it. The tax penalties can be huge, with up to 55% of what you take out going to the taxman. Plus, many companies offering early pension sales aren’t regulated, which puts you at even more risk if something goes wrong.

If you were pushed to sell your pension early without a full understanding of the potential risks, you might have grounds to make a mis-sold pension claim.

Can I sell my private pension?

Yes, you can sell your private pension. But, as with any pension selling, it comes with big risks and potentially huge tax implications. Even if you’re over 55, only the first 25% is tax-free, with the rest taxed as income.

If you’ve already sold your private pension and feel you weren’t properly advised, it could be part of a mis-sold SIPPs situation. Make sure you get the right advice before making any big decisions.

Do you think you have been a victim of pension mis-selling?

Pension mis-selling happens when you’re given bad advice to sell, transfer, or invest your pension in ways that don’t suit you. This can include being pushed into risky investments or being encouraged to transfer out of a defined-benefit pension when it’s not in your best interest.

If you think this might have happened to you, call our team today.

We’ve helped people reclaim millions in mis-sold pension compensation. If you have a valid claim, we’re ready to fight for you, too.