Can I take all my pension in one go?

In normal circumstances, you can't withdraw any of your pension before the age of 55 without paying a huge tax charge of up to 55%.

Ignore any companies offering early pension access with the promise that they can help you dodge these penalties.

This is a popular tactic among scammers that can leave you with little or no money in your pot.

If you're in poor health, or you work in an occupation that traditionally has early retirement ages, such as the military, you may be able to access your money earlier than 55 without facing punitive tax charges.

Speak to your pension scheme to check if this applies to you. 

Cashing in a final salary or defined benefit pension involves transferring it into a defined contribution pension, from which you can withdraw the money.

Unlike defined contribution pensions, defined benefit pensions give you a guaranteed income when you come to retire, which often rises with inflation each year.

That's why it is usually best to leave your money in a final salary pension rather than transfer it to a defined contribution scheme.

Not everyone can transfer. If you’re already receiving payments from a defined benefit scheme, you won’t be able to switch to a defined contribution scheme. 

The same applies to those in unfunded public sector defined benefit pensions, such as those for the NHS, teachers, the armed forces, the civil service, police and fire service.

Yes, you can cash in a defined contribution pension of any size.

It depends on your age. If you're over the age of 55, you have the right to cash in your pension savings.

But if you decide to cash in your pension before 55, you'll face a tax charge of up to 55%.

You have the option of transferring your old workplace pension to a new scheme - either to your new employer if it accepts transfers, or to a private pension that you've set up yourself.

As you get closer to retirement, it might make sense consolidate your pensions into one scheme, as this could save you charges and make it easier to manage your savings. 

You'll need to consider:

• How long you have left on your mortgage
• Whether you'll face any early repayment charges by paying it off early
• Whether you'll have enough left from cashing in your pension after paying tax
• The impact that cashing in a pension will have on your future retirement income

If you have sufficient savings in other pension schemes to give you a comfortable retirement, paying off your mortgage could be a good idea

However, if cashing in your pension now will leave you with little to live on in retirement, this is a risky strategy. 

If you're planning to invest the savings you've made from ending your mortgage repayments to build up your pension again, bear in mind that once you have cashed in a pension, the amount you can save into a pension while still earning tax relief falls dramatically - from £60,000 a year to just £10,000. This is known as the Money Purchase Annual Allowance.

Any money you've taken out of your pension will count towards the overall value of your estate when this is calculated for inheritance tax purposes. Unused pensions are also set to be included from 2027.

Most people don't have to pay inheritance tax because it's only charged when the value of your estate exceeds a certain threshold.