Drawing pension - timing

oliel

I have a few different pensions and my intention as i approach 55 is 1) I can take a tax free lump sum from one of them that I intend to take.   2) take all of one of the other pensions and pay tax on 75% of it.  My question is timing of this - I earn approximately 33k   the first pension (tax free lump sum is about 8k so i intend to take this before 5/4/26 the 2nd is about 12k - i intend to take this after 5/4/26 - am i right that this is the best way to do it so i am spreading it over 2 tax years so i dont pay high rate tax?   

DRS1

For the £12k 25% is tax free so £8k is taxable.  If you take that all in one go in April you will probably get higher rate tax deducted as they will assume you are getting £8k per month.  You then have to reclaim the overpaid tax.  Or you could take the taxable bit in smaller chunks spread out over the year.

And just to say £8k plus £33k would not put you into the higher rate band assuming you have no other taxable income.  So you could do it this tax year.

But if you are still working why would you take anything out of your pensions?

oliel

good idea i could take 25% tax free bit of pension 2 say 6/4/26 then take the rest in dribs and drabs - i have other pensions i am still paying into and others that are from previous employments - inner to use this money for other things.