A mix and match solution covers all the bases in terms of cash lumps sums, lifetime income and continued growth of the pension savings. Clearly the size of the pension savings and how this is organised will determine the impact of charges and tax.
Not all providers can match the flexibility of a mix and match approach so there’s some legwork to be done. As with all options, shopping around is essential as are regular reviews, not least because of the impact of charges over time.
There are some anomalies when it comes to tax-free lump sums. For example, transferring your entire pension savings into a ‘flexi-access drawdown’ scheme without taking a cash lump sum, doesn’t mean that the tax-free lump sum is available at a later date. This isn’t the case for partial transfers to this scheme.