Thanks for your response Your understanding - that the first 25% of the full pension pot, which you estimate will be at £210K - £230K by November 2016 is correct - So a ump sum of £52500 to £57500 will be tax free.
If you then take the remaining amount, which will be between £157500 and £172500 and you already have an income of £5500 then if you take the full pot then your tax position (based on this year allowances and tax rates) to include the taxable 75% of the pension pot will be as follows
Total income for tax purposes
75% pension pot £157500 - £172500
Total income £163,000 - £178,000 No personal allowances as income in excess of personal allowance entitlement (£120,000)
Liable to tax £157500 - £172500
First £31865 x 20% = £6373
Next £118135 x 40% = £47254
£13,000 - £28000 x 45% = £5850 - £12600
Total tax due between £59477 - £66227
So from the original pot (including the 25% tax free element) from £210,000 - £230,000 you will have between £150523 and £163773 left over in your pocket, by taking 100% out of the pension pot.
This is a huge amount to lose on tax, so please do take financial advise