Pension advice please

7136

I have a pension with Aviva that I could cash in if I wanted to as I’m 60 in July. I was going to leave it where it is as a couple of moths ago it dropped by about 14% however on checking this morning it’s gone back up so in total only down by 5%. My choices as I understand are still leave it where it is or take a tax free lump sum and leave the rest or take all of it and pay the tax, I’m not sure what to do as I’m aware it could go back down (or up) 
I apologise if I sound a bit naive, I have never paid much attention to pensions etc and this is a fund I took out about 30 years ago and had completely forgotten about, any advice on what you all think I should do would really be appreciated. 

Thanks. 

macman

You can take 25% out tax free. Above that, you will pay tax at your marginal rate, so 20% of it (at least) will go.
As you have seen, the market has made a remarkable recovery in the last few weeks.
Without knowing your circumstances, or what the pot is worth, it's impossible to advise, but bear in mind that you will not qualify for state pension for another 7 years or so, so will you need an income from this pot until then?

dunstonh

any advice on what you all think I should do would really be appreciated. 

Not enough info to go on to be able to answer that question.   

We dont know your financial needs (now and future), tax position, other provision etc.   So, what we think you should do is an impossible question to answer.

Brynsam

Seems to be similar to the question asked in April: https://forums.moneysavingexpert.com/discussion/6129790/should-we-take-lump-sum#latest

[Deleted User]

You need to understand what asset classes make up your investment. 

Then you need to evaluate risks of potential drawdowns and if you could live with them. Then evaluate your need and the kind of returns you require to meet them. 

Then you need to decide if you should be invested and how. 

FYI, your pension would have fallen again today.  You should not be basing your decisions on short term market returns.