Cashing in Pension Pot

Triumph13

The risk is needing to spend it, and then having to pay excess tax because of doing it in a hurry.  That's going to depend a lot on how much taxable income they already have and how much savings they have. 

If their income is £25k, it only takes three years to get it out at 20%.  If they have £200k of savings, it's unlikely they'll need it in a hurry.  In that case no need to do anything.

If they have £45k income and only £5k of savings, I'd be wanting to get £5k taxable out every year.