We can’t provide you with advice on this matter. Pension Wise can give you guidance on your options.
You can find further information on our website, or you can talk to a financial advisor for more guidance on your pension savings as they’ll take into consideration your individual situation.
Please note: A financial adviser may charge for advice. The fees for getting financial advice vary. Ask the adviser for more information before agreeing to an initial consultation.
It’s important to remember you’ve been saving into your pension plan so that you can get an income in retirement. Any money you take will reduce your pension pot and therefore reduce the level of retirement income you could receive.
If you cash in your pot this will reduce any future amount you can pay into a defined contribution pension scheme in the current tax year and any future tax year to £4,000.
If you have any debts, any lump sum you receive may be available to your creditor.
It’s important to consider the tax consequences of withdrawing cash from your pension pot as you could find yourself paying more tax than you expected. Taking your pension in smaller lump sums, spread over different tax years could help manage your tax liability.