Stay where you are
There’s no rush. You can leave your pension savings with us where they are for now, and plan to take them at a later date.
You can take all your pension savings as cash. A quarter will be tax-free and three-quarters of your cash will be taxable.
You have complete freedom to use the cash in any way you want. The only thing you can’t do is put it back into a pension.
Only a quarter of the cash you take is tax-free. You’ll be liable for tax on the other three-quarters.
Depending on your circumstances, this could put you into a higher tax bracket for the year – so you’d pay even more tax.
Also, if you carry on paying into your pension savings, the combined amount you and your employer can put in and still benefit from tax relief falls to £4,000 a year (from £40,000).