When you first designate to flexi-access drawdown, you’ll take 25% of your pension pot as a tax-free lump sum. After this, every withdrawal you take from your flexi-access drawdown account will be taxed as earned income at the highest rate you pay.

If HM Revenue & Customs (HMRC) hasn’t supplied us with your tax code for the current tax year, your withdrawal will be taxed using a temporary (emergency) rate. In most cases, this will mean that too much tax will be deducted and you’ll have to reclaim the overpayment from HMRC.