The remainder of your pension pot will be left invested and therefore has the chance to grow - but there is also a risk it could go down in value. ![]() Again, the first 25% of each amount you take will usually be tax-free, but the rest may be taxed as income, depending on your circumstances. You can also leave your money invested and withdraw smaller cash lump sums as and when you like. For more on how this works, check out our article on pensions and tax. You may also have to pay emergency tax on your payment, but you should be able to claim this back from HMRC. This may move you into the higher or additional rate tax band. You’ll get the first 25% as a tax-free lump sum, but you will need to pay tax on the remaining 75% as part of your annual income. However, depending on the size of your pot, you may have to pay a lot back in income tax. One of the more straightforward ways to access your pension savings is by withdrawing your pot as one big cash lump sum. Advisers usually charge for their services. You can find one in your local area over at Unbiased. You may also wish to speak to a financial adviser who can help you plan your retirement. You can book an appointment as soon as you are aged 50 or over and meet with someone face-to-face or speak to them on the phone. We recommend that you speak with Pension Wise (part of the Money and Pensions Service) to help you understand the tax implications of accessing your pension, as well as any impact on State benefits. You can also continue to pay into your pension - however, there are limits if you continue paying into one pension while making withdrawals from another. ![]() ![]() If you don't need to take an income from your pension, you can always leave your pot invested. withdrawing from your pot in smaller lump sums.Once you've reached the retirement age for your pension, you have 4 ways to access your savings: In this article, we explain your retirement options and how to withdraw from your pension. Once you reach 55, you'll be able to start cashing in most private or workplace pensions.
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