Phased Retirement


There's a growing trend towards phased retirement

The goal of phasing is to provide the optimal withdrawal method to match your income requirement, in a tax efficient manner.

This can be achieved by using taxable withdrawals where there is remaining personal allowance (and perhaps the basic rate tax threshold in the case of higher value withdrawals) and tax-free withdrawals such as Pension Commencement Lump Sum to provide any excess that would otherwise be taxable.

Putting it simply, using a combination of taxable income and tax free cash.