Taking small pension

Reliant

I have a small pension roughly £22000
looking to take tax free sum next year leaving me roughly £16000 am I better doing a draw down say for the next 6 years or take the balance in one hit 
thanks 

Albermarle

It depends partly on your tax position.
Are you still working/do you have any taxable income ( including the state pension) ?

Reliant

I will be 55 next year , still working live in Scotland salary roughly £45000

xylophone

Have you had a Pension Wise appointment?

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise/book-a-free-pension-wise-appointment

Reliant

Also have a workplace pension , final salary which not taking till 62 as that will be 23 years in the scheme 

Reliant

I have , but not much help really 

Dazed_and_C0nfused

Reliant said:

I will be 55 next year , still working live in Scotland salary roughly £45000

If you take the taxable element all in one go it will be mostly, if not all, liable to 42% tax.

Taking it later, when you are no longer working may well significantly reduce the tax payable.

LHW99

Do you really need to draw the TFLS now? For £6000 there could be a better way.

If the money is invested for 7 years it will have grown (hopefully), so you could draw it then when you retire which might allow you

a) to pay less tax on it and / or 

b) put off drawing the DB for maybe a year. Depending on the scheme, that might mean the DB itself is higher if it was drawn at 63, rather than 62.

Reliant

I am looking to
pay mortgage off with the remaining £16000 less the tax 

QrizB

Reliant said:

I am looking to
pay mortgage off with the remaining £16000 less the tax 

If you're planning to continue working for those six years, leaving your pension alone and paying the mortgage from income is likely to be the better financial option.