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Cashing in Pension Pot
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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.
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