My wife is intending to retire from Teaching in the summer of 2021 at age 55. She is thinking of not taking her Teacher's Pension until 60 (to get the maximum amount) but just take the Prudential AVCs out over a period of 5 years. Can she take out £12500 (the tax free limit) per year and not get taxed (except for the first year). I am thinking of something like this: 2021/22 (the year she retires) - £12500 (subject to some tax due to her earnings April to August) 2022/23, 2023/24, 2024/25, 2025/26 - £12500 each year but not subject to any tax due to it being below the threshold for tax) All theoretical amounts but it gives us something to think about. I also currently have my own deferred Teacher's Pension scheme as I left teaching at 53 but am still working in a non-teaching post but no doubt there will be some point in the near future where I too will want to claim!