How Pension Tax free cash works - new lump sum allowance explained

Pension tax free cash, what is the maximum you can get and what is the best way to withdraw it. There is a new pension lump sum allowance which is set at a maximum of £268,275.

to find out when you can retire, use my retirement calculator https://inanshadrack.com/retirement-c...

How to prioritise between tax free cash within a pension and withdrawing from an isa which is also free of income tax. A look at flexi access drawdown - FAD and UFPLS - Uncrystallised Funds Pension Lump Sum.

A common way to initially access a pension is to take taxable cash up to your personal allowance and also enjoy some tax free cash. However, if you resume working then the most you can contribute to a pension, the money purchase annual allowance (MPAA), will drop from £60,000 (or your earnings, whichever is lower) to £10,000.

A look at some worked examples using a retirement calculator spreadsheet.

Chapters
00:00 How to maximise pension tax free cash
00:45 Flexible Access Drawdown example
02:18 UFPLS example
03:10 Defined Benefit pension tax free cash
03:35 Lump Sum Allowance
04:21 Optimising tax free cash across pension and isa
05:11 Retirement calculator tax free cash optimisation
06:28 Advantages of a retirement calculator spreadsheet
07:46 How to take tax free cash from your pension
08:42 Lump Sum Allowance future considerations