Each year you get a personal allowance of tax-free income – the standard amount for the current tax year is £12,570. That’s any money you earn through work, property, investments etc, or from your pensions savings – completely free of tax!
Anything on top on that is usually taxed. The tax percentage will depend on how much you earn and where in the UK you live. It’s worth planning your retirement income to make the most of your money.