People who cash in large pension pots could be unwittingly landing themselves with hefty tax bills, new research reveals.
Making withdrawals over and above your 25 per cent tax-free lump sum can push you into a higher tax bracket, and limit how much you can benefit from pension tax relief in future.
Analysis of official data about people who took an entire pension fund worth £100,000-plus shows they stumped up a collective £87.2million in tax between October 2024 and March 2025.
That amount was 20 per cent higher than the year before, and some people would have been hit with five-figure tax bills
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