Taking my pension as I can't carry on working but worried about the taxman

Hello Ramsbottom

Thanks for getting in touch and I am sorry to hear about the situation. Before I run through some information with you, I’d just like to say this may be easier to discuss over a phone call due to the complexity involved. There may also be additional tax efficient options on the pension if life expectancy is statistically less than 12 months. If you feel up to it, we have a financial guidance team that can go over all this. They can be reached on 0808 808 0000 and are open between 8am and 6pm Monday to Friday. If you call, just select option 1, then 2 and then 1 again.

Generally speaking, most pensions are able to offer a tax-free lump sum (this is completely free of income tax and will not usually affect your personal allowance either). The tax-free lump sum available also wouldn’t usually be affected by you accessing a separate pension previously.

There can be a number of ways of accessing a pension pot and we would be more than happy to go over them with you including the tax implications on each option. However, if you would prefer you can also get financial advice. You can ask family and friends for a recommendation or by visiting: www.findanadviser.org/find-an-adviser.aspx

Tell the adviser what’s needed e.g., advice on retirement options due to a cancer diagnosis. The Financial Adviser should arrange a meeting to discuss these needs and do a fact-finding exercise (this is where they ask questions about finances and personal situation). Their next step is to research options and put together their recommendation.
 
MoneyHelper also have some useful websites and tips for choosing a Financial Advisor. Please access the link below for more information:
 https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/choosing-a-financial-adviser
 
When choosing a financial adviser; always check that they, and the company they work for, are authorised by the Financial Conduct Authority (FCA).
 
It’s possible to check individuals and companies on the FCA register:
 https://register.fca.org.uk/s/
 
To speak to the FCA directly, phone 0800 111 6768 from 8am to 6pm, Monday to Friday (except public holidays), and 9am to 1pm Saturdays.

I hope this provides you with a bit of helpful information. If you have any further questions or would like to discuss things such as mortgages or insurances, then please don’t hesitate to get back in touch. 

Yours Sincerely, 

Chris H 
Financial Guide 

The Financial Guidance Service will not advise you on the merits of buying, selling, cancelling or making a claim on a specific financial product from any company or otherwise provide you with any regulated services. As a guidance service, we do not provide financial advice or carry on other activities that are regulated and we are not authorised or regulated by the Financial Conduct Authority. No part of our service constitutes, nor is intended to constitute, a financial promotion within the meaning of the Financial Services and Markets Act 2000 nor an invitation or inducement to engage in investment activity. 

The aim of the Financial Guidance Service is to provide you with information to help you make informed decisions about your personal finances. For financial advice, including recommendations to buy, sell, cancel or make a claim on specific financial products or to obtain any other type of financial services, you should speak to a financial adviser or company who is permitted to provide you with those services. You can find a local financial advice firm or other type of firm who provides regulated services on the Financial Conduct Authority's website - https://register.fca.org.uk/directory/s/. 

The information that we provide you is for general guidance on your rights and responsibilities and is not legal advice. We are not liable to you for any information or services obtained by you from, or given to you by, a third party.