How To Pay Only 2.4% Tax On a £20K Pension Withdrawal?

How much tax would you actually pay if you took £20,000 out of your pension tomorrow?Most people assume they'll lose 20% straight away. But with no other income, a £20,000 withdrawal could cost you just £486 in tax. That's an effective rate of 2.4%. The problem is, most people don't realise how two built in shields protect the bulk of every withdrawal, or how quickly those shields disappear once the State Pension arrives.In this episode, I walk through exactly how the maths works at £20,000, £30,000, £50,000, and £80,000 withdrawals. I explain where the tax efficient sweet spot sits, why the State Pension can triple your tax bill on the same amount, and how emergency tax coding has led to HMRC refunding over £1.5 billion in overpaid pension tax since 2015.With over 25 years advising individuals and employers on pension strategy across PwC, EY, Aon, Willis Towers Watson, and KPMG, I've seen how the fear of a big tax bill stops people accessing money they genuinely need.Watch this episode in full on our YouTube channel: https://www.youtube.com/@retirementandmoney