In a recent YouTube video, he discussed the three biggest defined contribution pension mistakes that some of his retiree clients made and explained how and why they should try to avoid them. Cashing in an entire pension as a lump sumMr Shack explained that one retiree withdrew their whole £200,000 pension to invest it into a buy-to-let property. The man received £50,000 tax free whilst the rest was taxed as if he had earned the income in that single year. As the man was still working, and was a high-rate taxpayer, he ended up paying £67,000 in Income Tax meaning he was only left with £132,000. READ MORE: ‘Anger and disbelief’ as woman discovered she’s owed £1,109 student loan repayment refund

Source: Mint October 26, 2021 13:18 UTC