Dennis Hall, of Yellowtail Financial Planning, said if you started taking pension benefits after 5 April this year, the annual allowance reduces to £10,000, but even this is only available if you have sufficient earned income to justify the contribution.
"If not, a £3,600 limit applies, which is the amount that can be contributed to a pension regardless of your earnings," he said. "If you withdrew a large pension fund it may take many years to reinvest the money back into a pension."
However, all is not lost. Isas also offer a range of tax advantages. While there is no relief available on Isa contributions, unlike pensions any withdrawals from an Isa are tax-free.
With an annual Isa allowance of £15,240, they offer the ability to move pension money back into a tax-advantaged fund quicker than reinvesting into a pension.
Another option is to look at the tax position of your spouse, and whether there may be greater scope to use their pension or Isa allowances. Assets can be transferred between spouses without any tax penalty, and if they have a greater ability to make pension contributions then it may make sense to look at this option.
If you are prepared to take more risk with your money, you could look at other investment options, such as enterprise investment schemes (EISs) and venture capital trusts (VCTs).
"The underlying investments are generally higher risk than most pension funds, investing in smaller companies and early stage companies," Mr Hall said. "But there are very generous tax breaks for investors - 30pc tax relief is available - to encourage investment into Britain's enterprise economy.'' He added: "If you already have a well-balanced portfolio, this is an area you may wish to consider, but take advice first and make sure that you understand the risks involved."
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