If you're taking a lump sum from your pension, you may be taxed under the 'emergency code'
If you take money out of your pension under the new rules in April, you could end up paying a lot more tax than you expect
If you’re planning to take money out of your pension under the new rules from April 6th, you could get a nasty tax surprise. Why? Because most people will be taxed under the emergency code and will have more tax taken off them than they are likely to pay. The overpaid tax will be returned, but it could take some time.
Tax relief on pension contributions - what is it and how does it work?
Tax relief means that some money you'd normally pay in tax is paid into your pension. Here's what you need to know
When you pay money into a pension, in most cases you'll get tax relief. That means that the government pays some of the money you would normally pay as tax into your pension. That means if you're a basic rate taxpayer, you'll get an extra £20 for your pension for every £80 you pay in (making £100 in all). Here's how it works:
How to get a state pension statement - and understand it
A state pension statement will help you work out how much state pension you’ll get at retirement
If you want to find out how much state pension you may get, the best way to do this is to get a state pension statement. It will tell you how much state pension you have built up so far. But how do you get one?