pensions pot

dunstonh

  heck, its so complex, im so confused,  i can take  1/4 tax free, and so much a month for life, of take the whole lot, 
if i do it would push me over the 50000 tax  mark for 20%,

You can also do more things than that.  Such as ad-hoc smaller lump sums.  Monthly payments split 25% tax free and 75% taxable.  You can stop, start, increase, decrease.....

so would i pay,20% tax on my wage then 40% on everything over that amount? 

Tax is based on your total income in the tax year.   So, anything in the higher rate band would be taxed at 40%.

, or i can loose money by transferring it to another provider,

How would you lose money?

xylophone

It is possible that this is a deferred DB pension where you are being offered PCLS and small monthly pension OR "trivial commutation".

Please can you clarify  - does this pension arise from a previous employment which offered an occupational pension scheme?

Secret2ndAccount

Prior to 2016 it was always assumed that your pension pot turned into an annuity - a regular payment for life - when you retired. Since 2016 there have been many more options. It seems these options would suit you better, so transferring to a newer pension would likely work for you. Normally you don't lose money when you transfer. Why do you keep saying you will lose money if you transfer? (If this pension has some special guarantees or benefits then you might find it hard to transfer as you would lose those benefits. You haven't stated that this pension offers any special terms.)
If you take the whole lot in one go you are likely to pay some 40% tax. The first 25% of the pot is tax free. The rest is considered as income, just like your salary. So you add the pension (3/4 of it) to your salary. Of that total, the first 12.5k is zero tax, then it's 20% up to 50k, and 40% on everything above that.
By moving to a newer, more flexible pension product, you could draw out just the right amount each year to take your total income up to 50k, and never pay any 40% tax. The 25% tax free part could be taken as one lump at the start, or in little pieces alongside each withdrawal of taxable money, or a bit of both.

CosmicDancer_21

thank you 
been told  that to transfer it would incur admin fees, something to look into i think,
thank you all,

Sarahspangles

CosmicDancer_21 said:

  heck, its so complex, im so confused,  i can take  1/4 tax free, and so much a month for life, of take the whole lot, 
if i do it would push me over the 50000 tax  mark for 20%,
so would i pay,20% tax on my wage then 40% on everything over that amount?  or would i pay 40% tax on  the whole lot, wage, pension.
those are my options, or i can loose money by transferring it to another provider,  where i can take  it over a few years,
 

This has a clear explanation of how much tax you pay on income.

https://www.moneysavingexpert.com/banking/tax-rates/

There is a common misunderstanding about earning more means you are taxed more. I am a higher rate tax payer, but I only pay 40% on the bit of my salary that is over £50,270.

You get a new set of allowances every tax year (April to March) so spreading extra income over a couple of tax years may mean you pay less tax at the higher rate.