Since April 2015, you have been able to cash in all, or some, of your pension pot if you are 55 or older, even if you're not ready to start a pension yet. The first 25% of the withdrawal is tax-free; the rest is taxed as extra income.
Developed in association with Jonquil Lowe, JTL Financial Research
What's the lump sum you want to withdraw? This can be all or part of your pot.
What's your other income during this tax year (April 2017 to April 2018)? More info... If you expect to have other income during this tax year - for example from private pensions, rental income or the state pension - include that here. Don't include income from savings and investments.
If you cash in xxx, you will pay xxx in tax.
This means you'll receive xxx after tax, which includes a tax-free lump sum of xxx.
Whether you take your whole pot or just part of it, 25% of the withdrawal is tax free. The rest is taxed as income. Making a series of smaller withdrawals over several years can mean less tax than if you take your whole pot at once.
Find out more about your retirement income options.