The current rule is that a tax charge applies if you have more than £1.05 million in your pension savings when you want to start taking money. If this affects you, we recommend speaking with one of our &me consultants who can check you’re being as tax-efficient as possible.
If you have less than £1.05 million, you have the option to take 25% of your pension as a tax-free lump sum when you reach the age of 55. You can then use the rest to give you an income, which will be subject to regular income tax charges.