Pengage bird on a tree with coins as fruit - Future Pension
Pensions tax
Laura Bowler

Income Tax and Your Pension: Clearing Up the Confusion

If there’s one topic that consistently ties people in knots, it’s how pensions are treated for income tax. And honestly, it’s no surprise. Pensions are wonderfully tax‑efficient while you’re saving… but they do behave a bit differently once you start taking them. No wonder myths spread so easily.

So let’s break it down in plain English.

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