Working out tax free amount I can take each year from my pension

elsa1611

Can someone please just check my working out, I will be 55 shortly and want to take some tax free money from my pension each year to make the most of my allowance, I have transferred my marriage allowance to my husband so £11,310 is my starter, add on £3770 tax free 25% allowance for a total of £15,080. I am a little confused that I read about an extra £5000 savings allowance, would that help me to be able to take more out of my pension ?

I will have been paid interest from savings of £2500 by the end of the tax year and I started to receive carers allowance back in May for my Mum so £3500 will be paid which is taxable.
So by my reckoning I should be able to withdraw £9080 from my pension without paying tax ?

Is there anything I have forgot to include, I have no other earnings.

The only other thing I could think off was to take the full 25% from my pension then take £5310 each year after that, for the record I am not using any of my pension money I am just transferring  it to an equivalent stocks and shares ISA.

Any help would be much appreciated.

eskbanker

If you start from the assumption that your savings income of £2,500 will fit into the £5K starting savings rate, then your £11,310 adjusted personal allowance needs to accommodate the £3,500 taxable carer's allowance, leaving £7,810 of taxable income from your pension, which would be a gross withdrawal of £10,413 when using the 25% tax-free element.