Pension Release For Over 55's

[knitnat]

This is only out of curiosity, not something I am contemplating, hence why I have asked here and not taken financial advice. Can you take 25% of your pension early tax free or is it the first 25% of the sum you take that's tax free? Surely it's not that simple?

[fiction-factory]

25% of the value of the pension fund can be taken tax free. So if you take 25% or less you'd pay no tax on that bit taken.

[fiction-factory]

I should clarify that it's only the LUMP SUM bit I'm talking about.
So maybe my first sentence should have said
"up to 25% of the value of the pension fund can be taken as a tax free lump sum".
Any pension income from the rest would count as taxable income, although whether you'd actually pay tax on it would depend on your overall income and tax code

[Old_Geezer]

Will surely depend on the type of pension scheme you are in.