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Finance expert reveals £1 hack that could save pensioners from paying too much tax
A finance expert has shared a £1 hack that could stop pensioners from overpaying in tax.
In the first three months of 2025, over-55s have been forced to reclaim £44m in overpaid tax on their pension withdrawals.
Speaking on BBC Morning Live on Wednesday (11 June), Laura Pomfret said if you want to withdraw a chunk of your pension, first take out a small amount - as little as £1 - out first.
This will allow you to receive a tax code much faster - enabling you to check if it is correct before making a larger withdrawal.
“Once it’s correct you can take that larger sum out and know that it’s going to be taxed properly”, she said.
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