59 - thinking of taking pension - 100k pot - tax etc

Notebook

Hi
If I buy an annuity with the cash, it that taxed?  Is the money added to my total income, I earn around 37k.
Thanks

dunstonh

If I buy an annuity with the cash, it that taxed?

You would be an annuity with 75% of the pension.  25% would be paid to you as a lump sum tax free.    The annuity income is paid via PAYE and subject to income tax at your appropriate rate.

 Is the money added to my total income, I earn around 37k.

Yes.  

Notebook

dunstonh said:

If I buy an annuity with the cash, it that taxed?

You would be an annuity with 75% of the pension.  25% would be paid to you as a lump sum tax free.    The annuity income is paid via PAYE and subject to income tax at your appropriate rate.

 Is the money added to my total income, I earn around 37k.

Yes.  

or I could just take the 25% and leave the rest invested - correct?
Thanks

Albermarle

Notebook said:

dunstonh said:

If I buy an annuity with the cash, it that taxed?

You would be an annuity with 75% of the pension.  25% would be paid to you as a lump sum tax free.    The annuity income is paid via PAYE and subject to income tax at your appropriate rate.

 Is the money added to my total income, I earn around 37k.

Yes.  

or I could just take the 25% and leave the rest invested - correct?
Thanks

The usual basic choices are 
1) Take it all out as one lump sum ( usually not recommended )
2) take 25% tax free and buy an annuity with rest
3) take 25% tax free and keep the rest invested and withdraw regularly from it.
4) take a mixture of tax free and taxable cash on a regular basis

If you look at your pension providers website, normally all withdrawal options are explained . Also here.
Taking your pension | Help with taking your pension | MoneyHelper
A discussion with Pensionwise is probably a good idea.

Marcon

Notebook said:

dunstonh said:

If I buy an annuity with the cash, it that taxed?

You would be an annuity with 75% of the pension.  25% would be paid to you as a lump sum tax free.    The annuity income is paid via PAYE and subject to income tax at your appropriate rate.

 Is the money added to my total income, I earn around 37k.

Yes.  

or I could just take the 25% and leave the rest invested - correct?
Thanks

Only if your scheme offers that facility (known as 'drawdown') - and almost all modern contracts do. Check with your provider.