Maximize Your Pension Tax-Free Lump Sum Options
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Maximize Your Pension Tax-Free Lump Sum Options
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If my pension grows, can I have extra bites of 25% tax-free lump sum?
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If my pension grows, can I have extra bites of 25% tax-free lump s…
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thisismoney.co.uk
Most people don’t realise your pension is more flexible than you think. With phased drawdown, you don’t have to take all of your 25% tax-free lump sum in one go. Instead, you can take it gradually — like slicing a Swiss roll. Every slice gives you some tax-free cash (the jam) and some taxable income (the sponge). Used properly, this can help you bridge the gap before your State Pension kicks in, make use of your personal allowance, and in some cases take thousands out of your pension completely
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