How Tax Free Lump Sum Cash Works UK | Pensions
Channel: Financial Madness
Date: 2023-10-29

How Tax-Free Cash Lump Sum Works UK | Pensions | 25% Tax Free
We focus on Pensions and, more specifically, the best strategy to get a Tax-Free Lump Sum from your Pension when you reach retirement.

Most of us will have a Private Pension, these are the pensions that are separate from your State Pension. Most private pensions will come in the form of your workplace pension that you are automatically enrolled in with your employer. Alternatively, you can have a personal private pension that you can open yourself to help save for retirement. 

Simply put, putting money in a Pension equals Tax Relief, take money out of a Pension, you may pay income tax. 

Now the amount of Income Tax you will be charged, if eligible will be subject to the Income Tax rules of the tax year you are realising the Pension Income. 
There is one tax incentive that you can get at the point of withdrawal, and that is you can realise up to 25% of your Pension Pot as a Tax-Free Lump Sum


Chapter Information (How Tax Free Cash Works UK | Pensions | 25% Tax Free Lump Sum):
0:00 Introductions
0:25 Pension Recap
2:05 How Tax-Free Lump Sums work?
3:47 Example 25% Tax-Free Lump Sum
10:27 Things to Consider


🔹Skipton-  Personal Saving Allowance Calculator: https://www.skipton.co.uk/savings/personal-savings-allowance/personal-savings-allowance-calculator

DISCLAIMER: Any advice or statements perceived to be advice given in this video and any other videos on my channel are for information purposes only, and does not act as financial advice. 
You are fully responsible for your financial decisions. If you are in need of any Financial Advice, please seek out a professional advisor. If you are unsure of how to do this, please feel free to reach out to me and I am more than happy to guide you.

#Pension #TaxFree #Retirement