What are the tax implications of withdrawing funds from my pension plan?

Withdrawing funds from your pension plan may have tax implications. The tax treatment depends on various factors such as your age, the type of pension scheme, and the withdrawal amount. Generally, the first 25% of your pension can be taken tax-free, but the remaining amount will be subject to income tax at your marginal rate. If you take more than 25% as a lump sum, it could push you into a higher tax bracket. It's crucial to understand that withdrawing a large sum in one go may have significant tax consequences. It is advisable to seek professional advice to fully comprehend the tax implications and make informed decisions regarding your pension withdrawals.