Key takeaways
Most people can take up to 25% of their pension tax-free
The rest is usually taxed as income
Spreading withdrawals may help reduce tax
Planning ahead can help your pension go further
The way pension benefits are accessed can affect how much tax is paid. Understanding how pension income is taxed can help you make informed decisions about accessing your benefits.
This guide outlines how pension income is currently taxed in the UK and highlights some practical ways to help you plan efficiently.
This information is for general guidance only and does not constitute personal financial advice. Current legislation and your personal circumstances may change.