In this podcast episode, I cover two vital topics:
- How to access small cash sums from your pension pot
- The pros & cons of cashing out your pension entirely if you wish to do so
Key Takeaways
For each cash withdrawal, the first 25% is tax-free. The rest comes as a taxable income. Be aware that each withdrawal may involve a charge.
Once you take money out of your pension pot, any growth in its value is taxable. Lump sums could reduce your entitlement to benefits.
If you’re planning to put the money you’ve taken into savings or other investments, you should always compare and consider inheritance tax
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