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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4543
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I am 75 years of age & are thinking about cashing in my pension

Customer Question

I am 75 years of age & are thinking about cashing in my pension is it the right thing to do
Submitted: 2 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 2 years ago.
Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

This is little open ended question as much of the reply with depend upon what exactly you intend to do after cashing it out.

However, since you are over 55 years of age, if you cash out your pot, you will not be at much disadvantagious position.

As per the new rules, you will still be allowed to withdraw 25% tax free, but new legislation will allow the rest of the fund to be removed either in stages or all at once, and this will be taxed at a marginal rate.

Since I do not know the purpose of your intention of cashing out, please note that cashing out is a good option if you have any high cost debts to repay. Also if you wish you can cash out and improve your liquidity position as well. You will have faster access to cash. It will help you build a buffer for you as well. Emergence funds, say for example.

So, if you have a requirement which you cannot fulfil it with your current cash flow, you can consider cashing out on your pension.

I am sure this would help. I wish you good luck.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards
Expert:  Rakhi Vasavada replied 2 years ago.
Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

This is little open ended question as much of the reply with depend upon what exactly you intend to do after cashing it out.

However, since you are over 55 years of age, if you cash out your pot, you will not be at much disadvantagious position.

As per the new rules, you will still be allowed to withdraw 25% tax free, but new legislation will allow the rest of the fund to be removed either in stages or all at once, and this will be taxed at a marginal rate.

Since I do not know the purpose of your intention of cashing out, please note that cashing out is a good option if you have any high cost debts to repay. Also if you wish you can cash out and improve your liquidity position as well. You will have faster access to cash. It will help you build a buffer for you as well. Emergence funds, say for example.

So, if you have a requirement which you cannot fulfil it with your current cash flow, you can consider cashing out on your pension.

I am sure this would help. I wish you good luck.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards

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