Capital withdrawals are subject to a one-off tax charge, whereas pensions are subject to both distributed tax and income tax.
FAQ Filter: Retirement
Which should I choose when I retire: pension or capital?
Why not both? At Alvoso Pension Fund, capital withdrawals are possible in full or in part. A secure income for life after retirement is the main argument in favour of a retirement pension. Full or partial withdrawal of capital depends on individual life planning.