Most tax-efficient pension pot and payout to aim for?

[Gordon Gekko]

Exactly. This is a cousin of a mistake lots of people make. It reminds me of people going out of their way to incur tax deductible expenditure to ‘save money’. Put simply, all things being equal, it’s crazy to target an income in retirement that avoids paying tax at the higher rate.

 

[llgon]

So it's a choice between income now (which is taxable); or quite a bit more income in the future (75% of which is taxable).

Like a lot of contributors on this thread you're completely disregarding the OPs query, which is about the most tax efficient pension pot where they will maximise their tax free lump sum and 20% tax rate in retirement.

There are more than two options to choose from when it comes to pension planning.

 

[Gordon Gekko]

Like a lot of contributors on this thread you're completely disregarding the OPs query, which is about the most tax efficient pension pot where they will maximise their tax free lump sum and 20% tax rate in retirement

One of the many strengths of Askaboutmoney is that when a poster asks ‘What gun should I use to shoot myself in the foot and what’s the best angle to do it from?’, contributors have a tendency to point out that shooting oneself in the foot probably isn’t the best idea.

 

[3CC]

Like a lot of contributors on this thread you're completely disregarding the OPs query, which is about the most tax efficient pension pot where they will maximise their tax free lump sum and 20% tax rate in retirement.

There are more than two options to choose from when it comes to pension planning.

I was not responding to the OP, I was responding to another poster - LLB123.