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.