The amount you can draw from a pension at retirement without incurring additional tax – set at £1,073,100 for 2020/21, though rising with consumer price inflation.
If you draw benefits in excess of this amount you will face an additional lifetime allowance ‘charge’; this is either a total tax of 55% if the excess amount is taken as a lump sum, or 25% on top of regular income tax if taken as a regular income (annuity or income drawdown).
See also our retirement planning and tax benefits of a pension blog posts.
