When you decide to take some money out of your pension pot, the first 25% of it is completely tax-free. The remaining 75% is subject to income tax, depending on your total income. In the Cushon app, we'll show you an estimate of the tax you might have to pay and what you'll end up with, assuming you're a basic rate taxpayer.

When you first dip into your pension, it's normal to be taxed at the emergency rate, which is just to make sure you don't underpay your tax and get a huge bill later. This tax will be collected automatically through the PAYE system, so you won't have to do anything.

One important thing to remember - once you start using your pension, the amount you can save into any pension changes from the standard Annual Allowance to the Money Purchase Annual Allowance, which is lower. These allowances are set by the government and can change. So, if you want to keep saving into a pension after you've first accessed any of your pension savings, you'll need to be aware of the total value of these contributions, as any excess above this limit will be taxed at your highest rate.

More information can be found on the official government site. For example, see: Tax when you get a pension: 'What's taxed' and 'What's tax-free'.