A financial adviser can help with tax planning, and minimise the income tax you pay on money withdrawn from a pension.
At age 55 you can normally access a defined contribution pension flexibly, including 25% of the value which is tax-free. However, this is just one of various ways to take cash sums, and it may not be obvious straightaway which is best.
For example, it could be more tax efficient to withdraw your money as lump sums, where part is tax-free and part is taxable, as opposed to withdrawing all the tax-free cash at once, where all further income taken is fully taxable.
This could be particularly useful if your other income means you’re close to the higher rate or additional rate tax bands, or if you have other savings that you could use, such as ISAs.
In view of their preferential tax treatment on death, pensions are increasingly being used as a way of passing down money to future generations. If this is important to you advice can be invaluable in ensuring as much of your wealth is passed on as possible.
Tax treatment depends on individual circumstances and all tax rules may change in the future.