Pension fiddle

dunstonh

I don't think it matters what I need the money for.

As mentioned above, it does matter as other options may be available to achieve that goal. Especially if you don't know what you are doing. You cant go back and change it once it is done.

AnotherJoe

MORRIM wrote: »

I don't think it matters what I need the money for.

It can do. For example, suppose you wanted it to buy a house? It might be better, rather than take it in one fell swoop and a huge tax hit, to draw it down over multiple years, paying less tax, and have a mortgage for a while.

Or, suppose its for a car? Well a loan at say 5% over 5 years would be better than taking the money out and paying up to 40% tax.

So again, take a loan and then pay off as quickly as you can but with draw down eking it out to pay minimum tax.

Or suppose you want an expensive holiday? Again a short term loan may be cheaper than paying big wodges of tax.

Or, if like some people posting here you just want to get hold of it for no specific reason, you'd be mad to be paying 40% tax on it so you could put it in an account where you will get about 3% interest.

So, that is why it matters.