If you want to take a tax-free sum but leave the remainder of your pension pot invested, you’ll need to designate your fund for flexi-access drawdown. You can usually take up to 25% tax-free cash either in small chunks or one go. Under HMRC rules, for every £1 you take as tax-free cash, £3 will be moved to a flexi-access drawdown account that we’ll set up for you. Every withdrawal you then make from your flexi-access drawdown account will be taxed as earned income at the highest rate you pay. Any money not taken, remains invested giving it a chance to grow.

Find out more about taking your tax-free cash up front