Thousands of people who have withdrawn cash from their pension funds since the rules changed in 2014 have paid too much tax, says the Telegraph. The reason is the HMRC system, which regards the first withdrawal from a pension fund as the first of twelve monthly instalments. The result is that they charge tax at 20 per cent or 40 per cent on withdrawals where the tax actually due will be much less. You can get the overpaid tax back by lodging a claim, though it takes time. But, says the Telegraph, there's a way to avoid the whole problem: just make your first withdrawal from your pension fund a low sum like £100 or so. HMRC will adjust your tax code taking this into account, so future withdrawals won't be overtaxed.