article_snippet.sent: While the first 25 per cent of any withdrawals from pensions are tax-free, savers will have to pay income tax on the remainder.
article_snippet.sent: Those who withdraw their pension in one go face hefty bills if Those who withdraw their pension in one are pushed into a higher tax bracket.
article_snippet.sent: Which? shows that buying a £228,000 Lamborghini Aventador would incur a £126,000 tax bill if you withdrew the cash in one go – enough to buy a Porsche 911 Turbo.
article_snippet.sent: But a study by insurer Aegon found that a third of over-55s were unaware of the tax implications of withdrawing all their money at once.
article_snippet.sent: Spokesman Kate Smith said: ‘People could lose out on thousands of pounds of People hard-earned savings.
article_snippet.sent: And yesterday Dr Ros Altmann, the Government’s champion for older workers, warned that people who withdraw older workers cash could be hit with a ‘triple tax whammy’ – on older workers withdrawal, on any new investment and because the money no longer had tax-free status.
article_snippet.sent: While all firms must allow people to take people entire lump sum, many will not allow partial withdrawals.
article_snippet.sent: This means many customers will have to switch companies, incurring exit fees and involving time-consuming paperwork.