You have always been able to take 25% of your pension as pension cash – tax free cash without having to draw an income. Which is these days referred to as a pension commencement lump sum. You just had to wait until you are age 55 to get it – (unless your are retiring on ill health grounds or are in a prescribed occupation such as professional sports acceptable to the revenue!) But you often had to buy an annuity with the rest.
Since April 2015 you are able to take 100% of your pension as cash day one. 25% will be tax free 75% will be taxable as income at your marginal rate. If you spread taking your pension over a few years you could get most or all of it out 25% tax free and 75% net of basic rate tax. Beware of taking it all out in one year without seeking advice.
If you need cash NOW then your pension may just be the place to get it from.
Contact Us for further information.