How can I take my tax free cash?
You can take it all at once, or you can take it in stages. Let’s say you have £200,000 in your pension.
Here are some options you could consider.
Remember, if you use flexi-access drawdown to take an income on top of your tax free cash the
money left in your pension is still invested so the value can go down as well as up. Another option is
to take your tax free lump sum and then buy an annuity, which tends to involve less investment risk.
*A word about Uncrystallised Funds Pension Lump Sum (UFPLS)
You don’t have to take out all your savings at once if you decide to
use the UFPLS method to access them. You could take out a series
of UFPLS lump sums. In each case, 25% would be paid tax free
with the balance taxed at your marginal rate(s).
Before deciding what to do, we strongly recommend that you use
the free, impartial government guidance service Pension Wise,
or get professional financial advice.