Q&A

Drawing a big lump sum from my private pension

I was looking to withdraw £75,000 of my £82,000 Scottish Widwos pension pot. I am 55 and planing to continue to work and pay further funds in for the next 12 years at least. I was told that the 25% of £75,000 will be tax free and the rest of 75% will be taxed at 20%, 40% & 45%. I know this is a big decision and a huge tax bill for just over £23,000, but this is the only option to pay the credit cards and with the remaining to step on the property ladder as we are still in the renting place. Any thoughts please.