There are a few things you need to consider when taking a flexible lump sum with The People’s Pension.
When you use your pension savings for flexi-access drawdown with us:
- you can take your tax-free cash (normally up to 25% of your pension pot) a bit at a time or as one lump sum
- under HMRC rules, for every £1 you take as tax-free cash, £3 will move to a flexi-access drawdown (FAD) account that we’ll set up for you
- you need to have a minimum pension pot of £10,000 (or £2,000 if you’ve already taken money from your pot with The People’s Pension)
- each withdrawal from your FAD account must be a minimum of £200
- you can take 1 lump sum a tax month, for example from 6 May to 5 June – we don’t charge you for taking lump sums
- if you’re invested in multiple funds, every time you make a withdrawal, we’ll reduce your holding in each fund proportionately.
When you use your savings for a lump sum (UFPLS) with us:
- you need to have a minimum pension pot of £10,000 when you take your first lump sum (or £2,000 if you’ve already taken money before)
- each lump sum you take must be a minimum of £2,000 (or the rest of your savings in your pension pot if lower)
- you can only take 1 lump sum a tax month, for example from 6 May to 5 June – we don’t charge you for taking lump sums
- if you’re invested in multiple funds, every time you take a payment, we’ll reduce your holding in each fund proportionately.
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