Do I take money from an ISA or my pension?

Good_Old_Granny

I've decided to give my garden a makeover. It's not going to be cheap! My question is, do I take the money I need out of my pension pot (as drawdown) or cash in a stocks and shares ISA? I took my tax free limit from my pension when I retired three years ago and haven't touched my pension pot since. The amount I would be taking is around 7% this tax year and another 7% in the tax year starting this April. Thank you in advance for any suggestions!

pip895

Depends on your tax situation.  Could the pension withdrawal lumber you with a big tax bill/push you into 40% tax?  You could take a smaller amount from both.  
My thoughts are that I will take regular day to day spending from my SIPP and use the ISA for one off expenses.

AlanP_2

Are you still working / contributing to a pension?

El_Torro

Yeah, it depends a lot on the numbers involved. Basically if you can avoid paying 40% on the pension money then do so. Can't really say more than that without knowing the numbers involved (how much taxable income you have, how much is currently in your pension, how much is in your ISA, and how much you are looking to withdraw / spend). 

Costabit

Are you still contributing to a pension ?
Any MPAA considerations ?

Good_Old_Granny

JamesRobinson48 said:

Anyone seeking to assist might need to ask a few questions to better understand your situation.  First and foremost, what tax rate % do you expect to bear on a pension drawdown in the current tax year and in the next tax year?

I aim to keep it at 20% for both years thanks.