Pension savers can get their hands on a significant chunk of their pension pot without having to pay tax on it. But how can they make sure they do it securely, and what tax issues do they need to consider?
The pension freedoms haven’t just given savers greater say over how their money is used. It has also been a boon for scammers, looking to sweet-talk the over-55s into moving their pension lump sum, or even the entire pension pot, into far more volatile – and, in some cases, outright fraudulent – schemes.
More than 250 people reported being the victims of pension scams in 2017, losing an average of £91,000 each, according to Action Fraud  , while the Financial Conduct Authority (FCA) reckons that 23% of adults experienced an unsolicited approach about pensions or investments that might be a scam between June 2017 and June 2018. 
If you want to avoid being caught out, be suspicious of any pension or investment offers you receive out of the blue, whether over the phone, by text message or by email. Read our article on recognising and reacting to potential pension scams to stay safe.
Don’t allow anyone to rush you into making decisions about withdrawing any of your pension or reinvesting it. Instead, if you’re thinking about taking out a lump sum, work out the balance you’ll need to support yourself into your retirement.
 Action Fraud, 2018. Victims of pension fraudsters lost an average £91,000, https://www.actionfraud.police.uk/news/victims-of-pension-fraudsters-lost-an-average-91k