Under the new pension rules of April 2015, you can now withdraw your entire pension pot as one lump sum once you reach the age of 55.

How It Works

To take your whole pension pot as cash, you simply close your pension pot and withdraw it all as cash. 25% is usually tax-free and the remaining 75% is taxable. If you have more than one pension pot, you can take the whole amount from one pot and continue to pay into the others.

Things To Consider
You can choose this option to withdraw your entire pension pot should you wish, however there are some things you need consider before doing so;
  • Do you have enough money to last for your whole retirement - this option does not provide a regular income.
  • As 75% of the withdrawal is taxable, your tax rate may increase once the sum is added to any existing income.
  • Taking a large sum of cash may reduce any benefit entitlement you may have now or later in life - for example to assist with long term care needs.
What Happens When I Die?

Any cash remaining from your pension pot will be classed as your part of your estate for Inheritance Tax purposes. Whereas, any remaining cash from your pension pot would not normally be liable for Inheritance Tax and would be passed tax-free to your beneficiaries if you should die before age 75.

Can I Change My Mind?

If you should withdraw all your fund in one go and then decide at a later date you wish to reinvest your money, we can assist you with this.

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