Understand the tax you might pay when withdrawing from your pension
Accessing your pension is a big financial decision. The tax you pay depends on how much you take, how you access it, and what other income you have in the same tax year.
A regulated adviser can help you make sense of your options, avoid paying more tax than you need to, and build a withdrawal plan that supports your long-term retirement goals.
- Understand how much you could take tax-free
- Avoid accidentally moving into a higher tax bracket
- Compare lump sums, regular income and drawdown options
- Make informed decisions about how and when to withdraw
How tax on pension withdrawals works
In most cases, you can take up to 25% of your pension pot tax free.
Anything over the tax-free amount is treated as income, and taxed at your usual rate.
Withdraw too much at once and you could push yourself into a higher tax band, paying more than necessary.
Why getting pension tax advice matters
Your pension is one of your most valuable assets. Making the right choices today can increase your income, reduce unnecessary tax and help your pension last longer.
With expert guidance, you can:
- Make the most of your 25% tax-free cash
- Plan withdrawals so you stay within the right tax band
- Compare drawdown, annuity and lump-sum options
- Reduce the risk of running out of money too soon
The advice difference:
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Scenario 1: Sarah withdraws £40,000 in one go. Because this pushes her into a higher tax band, she pays thousands more in tax than expected.
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Scenario 2: Sarah takes 25% tax-free, then spreads further withdrawals over several years. This keeps her in a lower tax band, helping her retain more of her hard-earned pension.**
How it works?
It couldn't be simpler, start by completing our online form so we can get a better understanding of how we can help.
We will use the information that you provide us with to match you with the best pension adviser for you.
You’ll hear from your local adviser shortly to book your free consultation with no pressure to proceed.
Very professional and friendly advice. Highly recommend this company to anyone who is not clear on what to do with your pension after retirement.
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Why use our service?
Making decisions about your pension is important, and getting the right advice can make all the difference. Our service connects you with trusted, FCA-regulated advisers who are ready to help you navigate your pension choices.
- Free and impartial - There’s no charge for using our service — we’ll match you with a qualified adviser at no cost to you.
- Quick and convenient - It takes less than a minute to be matched with an adviser who understands your needs.
- Advisers near you - Our nationwide network means you’ll be connected with someone local, so you can choose how and when to speak.
Our expert adviser network
All of the advisers we work with are FCA-authorised and regulated.
Frequently asked questions
Pensions can be one of the most valuable assets you’ll ever own but also one of the most complex. The right advice helps you make smart, tax-efficient choices, avoid costly mistakes, and create a retirement income that suits your goals.
The cost depends on your needs and the complexity of your situation. Your initial consultation is free, so you can explore your options without any obligation.
Often, yes you can, and this can make managing your retirement income much simpler. However, it’s important to check if you’d be giving up valuable benefits before moving your pensions. An adviser can review this for you.
You could take a tax-free lump sum, use pension drawdown, buy an annuity, or use a combination of these options. The right choice depends on your circumstances, risk appetite, and income needs. An FCA-regulated adviser can talk you through your options to help you make the right decision for you.
[2] According to research conducted by Royal London and ILC
** Anything above the tax-free amount is taxed as income (and may push you into a higher band). Examples shown are for illustration only not personal advice.