You can take one or more cash lump sums, which can be all or part of your fund. Normally, under current legislation 25% of the lump sum will be tax free and you will pay tax on the rest at your marginal tax rate. Cheviot will charge a small administration fee if you take more than one lump sum in a year. Future contributions to pension arrangements may be restricted to £10k per year once you have taken a taxable lump sum from your fund so this may not be a suitable option if you or your employer are still contributing to a pension.
Consider carefully the amount of tax you will need to pay on any lump sum. You may pay a higher rate of tax than you usually do.
We strongly recommend that you use the Pension Wise service provided by the Government and take independent financial advive where appropriate.
The information on this page is provided in good faith but is not legal or financial advice or binding on the Trustee. The trust deed and rules will override in the event of any inconsistency.
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