tax on pension

bobkeats

I am 60 and have £30k in a private pension.
What is the best / most efficient way of getting access to my pension with the least amount of tax being paid on it.
For instance will I pay the same amount of tax if I take it as a lump sum now with 25% tax free then pay the rest as my normal tax code blah blah blah or is it best to leave it till I retire and take it in whatever form. IS THE TAX THE SAME AMOUNT ?

Thanks.

zygurat789

bobkeats wrote: »

I am 60 and have £30k in a private pension.
What is the best / most efficient way of getting access to my pension with the least amount of tax being paid on it.
For instance will I pay the same amount of tax if I take it as a lump sum now with 25% tax free then pay the rest as my normal tax code blah blah blah or is it best to leave it till I retire and take it in whatever form. IS THE TAX THE SAME AMOUNT ?

Thanks.

Apart from the 25% lump sum the income from your pension, including a full withdrawl, is taxed as income, so,to be able to answer your question we would need details of all your other income.

jem16

bobkeats wrote: »

For instance will I pay the same amount of tax if I take it as a lump sum now with 25% tax free then pay the rest as my normal tax code blah blah blah or is it best to leave it till I retire and take it in whatever form. IS THE TAX THE SAME AMOUNT ?

Thanks.

if you are still working, then the most likely answer is that you will pay more tax now than you would if you waited till you retire and this would be your only income.

However without knowing your income now and when you retire, no-one can give you a more specific answer.