Thousands of pensioners have managed to reclaim over £10,000 due to excessive tax charges on withdrawals. The data from HMRC was secured by Royal London via a freedom of information (FOI) request.

Older people in the UK have claimed back more than £10,000 after being overcharged tax on their pension pots, it has emerged. Data shows some across the UK have managed to secure refunds in excess of an eye-watering £100,000.

Under normal circumstances, individuals can withdraw up to 25% of their pension pot tax-free, while the remaining 75% is subject to income tax. However, an "emergency" tax rate is often applied to pension withdrawals, with HMRC treating the withdrawal as if it were the individual's monthly income for the rest of the tax year.

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