One in 10 risk huge tax bills by planning to withdraw entire pension pot

James Phillips
clock • 2 min read

One in 10 of this year's retirees will take their entire pension pot as a lump sum, Prudential's 'Class of 2018' research finds.

Despite the potential tax bill shocks, another 10% plan to take more than the tax-free 25% limit but not the full pot. Overall, nearly three-quarters of those who plan to take more than a quarter s...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Defined Contribution

Government announces small pensions pot consolidator

Government announces small pensions pot consolidator

Pension Schemes Bill measure will reduce admin costs and boost pots

Jonathan Stapleton
clock 24 April 2025 • 2 min read
Mansion House Compact II draft circulated after 'tense' negotiations

Mansion House Compact II draft circulated after 'tense' negotiations

Reports say Rachel Reeves is closing in on a £50bn deal with pension funds to ‘buy British’

Jonathan Stapleton
clock 22 April 2025 • 2 min read
Aon urges DC members to 'stay calm' amid increased market volatility

Aon urges DC members to 'stay calm' amid increased market volatility

Firm warns savers to be ‘on their guard’ against risk of scams during tariff-induced turmoil

Martin Richmond
clock 14 April 2025 • 2 min read
Trustpilot