Unexpected pension pot advice

davehsug

Dazed_and_C0nfused said:

If I was to cash it in all at once though, I'd end up in the higher tax bracket for that year. There don't seem to be any bonuses applied at retirement age, so I'd considered taking the 25% tax free in one year - probably next, and the rest the following year.

This bit didn't really make sense to me.

If taking it all in one go would put you into the higher rate tax bracket why would you take just the 25% TFLS in one year and then all the taxable income in another?

Wouldn't a more tax efficient option be to take as much as you can each year to stay in the basic rate band?  You would presumably still get it all out in a relatively short time frame.

Sorry, perhaps I wasn't clear. £27,000 taken in 1 year would put me into the higher tax bracket. Taking the 25% - just shy of £7k -in 1 year & the other £21k in year 2 would not. Obviously, I'd pay 20% tax on the £21k, but I'd pay that whenever I took it and in whatever amounts.
Anyway, thanks for all the advice. I'll have a think, speak to Re-assure and make my decision.