Money Lesson Single

Take the tax-free cash, or leave it?

At fifty-five your provider will hand you a quarter of your pension, tax free, no questions asked. The same saver, planned two ways, shows what taking it thirteen years early actually costs.

Employment Expenses ISA Investments Savings Account

Leave it invested

2 Goals

Take no lump sum at fifty-five, and draw the pension from sixty-eight as a blend, a quarter of every payment tax free.

Try this plan

Employment Expenses ISA Investments Savings Account

Take the cash at fifty-five

2 Goals

Take the full tax-free lump sum now and invest it, then draw the rest as taxable income from sixty-eight.

Try this plan

Leave it invested Take the cash at fifty-five

Taking the cash ~13 years early leaves you ~£194.9k poorer by the end, because it moves the money out of the only wrapper that shelters all of it.