Pension reforms were brought in back in April 2015, designed to make it easier for you to access as much or as little of your pension money from the age of 55 as and when you want it. You might well have heard the term ‘sell my pension’ being bandied about but it’s important to note that you’re not actually able to ‘sell’ it as such.
This term is used to refer to someone who wants to take some money out of their pension fund before they retire, so a more accurate phrase – and one you’ve probably also heard – is ‘pension release’ or ‘pension unlocking’.
Of course, there are a few risks associated with unlocking your pension, such as making sure you get value for money, outliving your savings and even exposing yourself to fraud and investment scams. As such, make sure you do due diligence and ensure that the company you choose to work with is legally compliant and all above board.
So who can you sell your pension to? Basically, any financial organisation out there will be able to put in an offer for your annuity – but you should be aware that there may be costs associated with selling, such as administrative fees, health checks and advice. The buyer will also want to make a profit, so bear this in mind as well.
Always seek out independent financial advice before unlocking your pension, so you can make sure you get the best value for money. This will also help you to avoid scams and fraud.