- Category: Financial News
- Published: Wednesday, 19 April 2017 14:01
- Written by Chris Dixon
There is an old adage that “Just because you can, doesn’t mean you should” however, according to the Association of British Insurers, over £3 billion has been paid out in lump- sum cash payments from British pensions. If you choose to access your pension- pot ‘as a lump sum’ then 25% of it is paid tax free which means the remaining 75% you will be paying tax at your standard marginal income tax rate.
It is important to remember that, if you are still earning, then any extra pension monies you take out will be included in your total tax liabilities before working out your tax levels.