You’ll pay up to 55% tax on payments from your pension provider if they make an ‘unauthorised payment’. This is a payment made outside of the government’s tax rules and usually includes:
any payments before you’re 55 (there are exceptions)
a ‘trivial commutation’ lump sum of over £30,000
regular payments into your account after you’ve died
Some companies advertise personal loans or cash advances if you take your pension early. These payments are unauthorised and you have to pay tax on them.