Withdrawing money from your pension pot may seem like a quick cash-flow solution, however, there complex tax rules to consider.
Even now, given the current market volatility, pensions remain one of the most tax-efficient investments you can make.
Hospital doctors and GPs in the UK are lobbying the government to amend the current system of restricting tax relief on pension contributions.
If you decide to continue working past the State Pension age, you could be paying unnecessary tax, in some cases up to 40%.
The Pension freedom changes of April 2015 represented a complete shake-up of the UK’s pensions system, giving people much more control over their pension savings than before.
Currently, the minimum pension contribution is a total of 5% on the standard contribution basis. This will rise to 8% on 6 April 2019.