Private pension

dunstonh

I am not aware I pay any charges on my account paying 4.5% Tandem.

That is because savings accounts use implicit charges rather than explicit charges.   Its the difference between what the bank earns and what the bank pays you.  Historically, its averages around 1.9% p.a. but tends to reduce as interest rates fall and increase as they rise.

However the more it grows the greater amount that's going to be, hence my reason for asking. 

Same with the pension.    Except with the savings account, you would have lost 21% of the value first.

I'm 59 but retired due to health reasons, I'm on benefits though so how would this work regarding your point. 

Taking the 75% remaining pension out would be classed as income.   So, any means tested benefits that take income into account could be reduced.  Plus, you would be increasing your savings balance.  So, any means tested benefits taking savings into account could be reduced.

Qyburn

Blueallblueno9 said:

I'm 59 but retired due to health reasons, I'm on benefits though so how would this work regarding your point. 

Unless your benefits and other income put you over the 21% threshold already, then taking from this pension a bit at a time, in different tax years, would mean paying less tax. Maybe not by much, but it depends on your other taxable income.