If you want to know “can I take a cash sum from my pension” then you know you have come to the right place. A lot of people wonder “can I take a cash sum from my pension” but they don’t really look into how it can affect them in the long run. When the time comes for you to take a look at the rules regarding your pension, you will find that the rules largely depend on whether or not you have a defined pension scheme or whether you have a contribution scheme. If you are taking a cash sum from your defined scheme then your scheme may offer you a cash sum separately. This is especially the case if you work in the public sector and if this is the case then you will need to take the pension and the sum at the same time. You may be able to change your pension so you can take more cash, but at the end of the day, you may be quite limited when it comes to your options. So now you know a bit more about “can I take a cash sum from my pension” and you also know how you can exchange some of your pension for more cash if you want as well.
If your scheme doesn’t give you the chance to take out your pension and your lump sum on two different occasions then you need to take a look at the rates. If you do choose to take out some of your pot as a lump sum then you’ll find that the lump sum you get from the pot will be much less so this is the main thing that you need to think about. Ever since they made the announcement in April, more and more people have been wondering “can I take a cash sum from my pension” and this is all because you don’t have to pay the tax required on the lump sum. Now this may have you thinking “can I take a cash sum from my pension” and not pay any tax at all, but the truth is that you do need to pay tax, you just don’t have to pay it on the first 25%.
If you want to know “can I take a cash sum from my pension” and you are on a defined contribution pension then you will be taxed at what is called the marginal rate. This is done for your income tax and it is calculated on your taxable income in that year. You will also include the amount of your pension pot in this as well so as you can see, it is entirely possible for you to work your pension around your needs. Why don’t you ask your local pension advisor “can I take a cash sum from my pension” to see how they can help you to get whatever you need from your funds.
Can I Take A Cash Sum From My Pension ? A key question that has most people unsure on the answer, well contact us today and we can talk through your pension and discover what your options are for you.