Tax hit dissuading savers from taking pensions as cash

This was because the tax implications of taking the pot as a whole fund withdrawal put people off the option, retirement adviser My Pension Expert said. The radical decision to allow anyone over the age of 55 to take their pension pot as cash was subject to that withdrawal being taxed at the marginal rate for that year, which could wipe out almost half of a fund in some cases. Highlighting longevity risk also led to the majority of people avoiding the lump sum option in favour of drawdown and annuities, the adviser said. Industry pundits had been concerned about a potential rush on...