Sometimes you just got to let it out.

Go, I've had a question from a viewer called Phil who asks about drawing tax-free cash out of his pension.

Should he do so? Should he not? That's what we're talking about in this week's five-minute Friday.

Sound like a plan? So thank you to Phil for this this question let's stick five minutes on the clock

down here a little glance at the monitor there see that very bad form I should

eyeball you dear viewer but anyway the clock's already ticking so let's answer Phil's question now

specifically Phil wondered about drawing the tax-free cash element out of his

pension and perhaps reinvesting it into an ISA so remember when you get to

retirement whatever that means, and you've

built up a pension fund, one quarter of it can be taken out as a tax-free cash

lump sum to do whatever you want with. Buy a new car, have a nice holiday, make a

sizable gift to your favorite financial youtuber. Don't actually do that, it might cause me some

problems. So that facility is there and it's up to you whether you take advantage of it or not.

One thing we need to definitely get out of the way is something called tax-free cash recycling.

Now you might be thinking because you're smart, why don't I take the tax-free cash out of my pension, reinvest it into a pension,

and get the tax relief, the uplift from the government.

More free money.

Everyone's a winner.

Well, guess whether you think the revenue might have thought about that or not? Well, of course, they think the revenue might have thought about that or not.

Well, of course they have.

It's called Tax-Free Cash Recycling, and it's an unauthorized payment into your pension.

There are certain criteria, like if it's more than 7.5,000 pounds it's automatically tax-free cash recycling.

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