Contracted out pot

Albermarle

SwottyWatty said:

Taking the full £53k of which about £40k would be taxable means that *some* of it may be taxed at 40%, depending on what other income you have in the year.

Unfortunately or fortunately my salary is very close to the tax threshold into 40%.
That said, as that is not likely to change, anything after  i take the 25% lump would be drawn down at 40% bit by bit anyway unless i did not touch it until i retired and by income dropped.

Normally the idea of pensions is to take them once your employment income has stopped. You can take them earlier but you will most likely pay more tax that way.