What about tax?

How much tax you have to pay depends on a few things:

• How much income you take out of your pension savings in any tax year
• If you have other sources of income
• Which benefits you might receive

A financial adviser can help you understand ways to minimise the tax you have to pay, and you can use our tax planning tool (provided by HUB Financial Solutions). You can also get free tax advice from Tax Help For Older People or you can find general information on the HMRC website.

What about State Benefits?

Taking large payments from your retirement savings can affect your entitlement to means tested State Benefits. For example, no one with more than £16,000 in saving and investments will be entitled to Housing Benefit and Council Tax Support. If you are entitled to State Benefits you should take care with how much money you take, if you’re don’t plan to spend it.

You may be entitled to a State Pension on top of your retirement savings. You can find out if you are eligible, how much you will get, and when, on the Government website.