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State pensioners have been warned not to withdraw cash over "rumours" ahead of November's Budget from the Labour Party .

Once you reach age 55 (rising to 57 from 2028), you can take up to 25% of your pension pot as tax-free cash – otherwise known as a pension commencement lump sum (PCLS).

You can move the remainder into drawdown from which you can take taxable income, whenever and however much you want. Or you can use the remainder to buy an annuity – a guaranteed income for life – which will also be taxed as income.

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Your final option is to take the whole remaining 75% as cash, but again that will be subject to income tax. Taking such a large amount all at once could push some people into a higher

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