Family Pension Income Tax on principal withdrawal

A senior citizen is seeking advice on whether withdrawing the full amount from their HDFC family pension account, which is £700,000, and reinvesting it in bank Fixed Deposits (FDs) would be subject to tax. They are considering this to avoid the hassle of regular KYC checks and pension interruptions. The advice given is to check the policy document for premature withdrawal taxability or contact the pension provider's helpline for a definitive answer.