Should You Sell Your Pension Benefits?

If you are a retiree who rather prefers to receive a lump sum instead of getting paid on a monthly basis, you can now sell off your pension to third-party organizations in exchange of a lump sum. These third party organizations serve as mediators between the pensioner and the investor. These third-party bodies are commonly known as “pension sale” or “pension buyout” companies. These companies create a package of the pension benefits that they buy into portfolios, and sell it to the investors who then contribute the capital that’s paid to the pensioners as the lump sum. So, if as a retiree you are in the need of cash urgently, you can sell your pension that raises the hope for the investors as a possible profitable investment.

So, if your question is “can I sell my pension?” then yes, of course you can. However, it’s imperative for you to confirm a few things before you do so. The first thing that you must verify is the legality of the process, that is, if it’s lawful for you to sell your pension. For instance, there are many government pensions that cannot be sold. However, if you try to sell off your pension despite the legal restrictions, the pension buying firms try to find way through the legalities by making you a set up a special bank account that is controlled by the pension buying firm.Such transactions encouraged by these companies are believed to have murky regulatory qualities that are potentially risky for you. In this case, you must hire a lawyer to verify the legality of the transactions you are thinking of before you sign on the dotted lines.

Next, you must check the chastity of such deals. In such cases, an accountant is the best person who can help you find out if the amount being offered to you in exchange of your pension by these companies is reasonable. As the amount received can place in you a higher tax bracket, these accountants can even explain tax complications. While the investors can enjoy of upto 7 percent from this type of investment and the pension-buying firms enjoy an even larger share, the pensioner generally gets the chicken feed. You must be wondering then can I sell my pension still? Then yes, as all you should do is to contact those companies that advertise or solicit their lump sum cash payment offers to people wanting to sell their pensions. You can trace such companies by online research; get in touch with the company and find out if you are eligible, what is the amount you can receive, and what’s the cost associated to make the deal.

However, it’s suggested that you think twice before selling your pension benefits as, you often get much less returns compared to what you can get by extracting your pension regularly. So, if you still have a question “can I sell my pension?” the answer is yes, but think twice before you do so.

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