Are You Thinking About Unlocking Your Pension?

If you are hovering around the age of mid fifty and thinking of unlocking the fund in your pension scheme then need to take care of certain things which are considered to be important factors in this process. Before jumping into the factors, let us discuss a little about unlocking pension fund. If you are working for some organisation then you must be having a pension fund account and you can unlock or release the amount from the fund before getting retired and that is what known as Pension unlocking or Pension release.

But it needs to be legal and for that you need to be of fifty five or above age. But what if you are not of that age? Then you need to show your poor health condition to get the money out of the fund. So, if you are about to say unlock my pension to the accounts department of your organisation then consider the below written factors before doing the same.

Firstly, you have to be of 55 or above age otherwise unlocking pension is completely illegal in any part of the world. If anyone tells you that you can unlock the pension before the age of 55, consider them to be fraud and it might be a scam. If you try to unlock your pension before this particular age, a huge percentage of the pension amount that is accumulated in the fund will be deducted.

Secondly, since the normal retirement age varies from 60 to 65 depending on the type of the organisation policy, when you are unlocking the pension before that age and your retirement, you need to show proper cause for withdrawing the amount. Then you can access the fund only after transferring it to another scheme from where you can avail the amount. You also need to approval of your employer in the matter and you need to talk to the management or the administrator at your organisation.

Thirdly, the amount which you are going to get will be less than the amount that you would have earned if you continued the scheme till your retirement. This is for obvious reason as the number of years and the interest on the amount will be less and also there are some charges which you have to pay for withdrawing the amount before its maturity. This is normal and not related to the first point where money gets deducted for being less than 55 years of age.

Fourthly, if you have serious needs to be met and you need the pension amount for that reason like health issues or some other urgent and important concern, then you might unlock your pension if you are legally eligible but if not then you must consider it twice. After retirement, you will have the need for this money and that is why you need to plan beforehand.

Finally, it is always better to consider the advice of financial advisor if you are thinking about unlock my pension fund for better understanding of the matter and a safe future.
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About Dhanur Chauhan

I am professional blogger share guide about WordPress, blogging tutorial, seo techniques, making money from blog and getting traffic to the blog.
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