Small Taxable Pension Fund - Cash or Investment Funds?

GSP

My wife took her first drawdown of tax free 7k from her pension fund, and £21k was crystallised under one investment.

In this crystallised fund, under review with proposed changes this one investment has been made into about 15 investments, so obviously all with small amounts.

Once the first drawdown of tax free money of £7k took place, my intention was to use the ‘new taxable crystallised fund to drawdown using the personal tax allowance up to £12,570 if need be.

Is it better I tell my advisor to keep £12,570 as cash and use the rest in a mixture of one or more investments.
Or go with his proposed changes where there is only a small proportion of cash?
If I request £12,570 and investments in this fund need to be sold to raise cash, am I more at risk with the investments being sold and should I turn the £12,570 into cash now?

Thanks

El_Torro

Whether it should all be in cash depends on whether you already have enough cash in other places. Can you leave this money for the long term and be flexible on when you take it? If so then keeping it invested isn’t a bad idea. If you know you will be spending this money soon then cashing it in now could be the best choice.

Shares have taken a hammering this year and hopefully won’t drop much further. They might though. Keeping it invested means you might sell at a point when they’re worth less than they are today.