I’ve a protected pension commencement lump sum (PCLS) which means I can take more than 25% of my pot as a tax-free lump sum. What happens if I take this as a lump sum (UFPLS)?

If you use your savings for a lump sum payment (also known as an uncrystallised funds pension lump sum or UFPLS) with us:

You’d lose this higher entitlement as the maximum PCLS (tax-free lump sum) amount for a UFPLS payment is usually 25%.

If you use your savings for flexi-access drawdown with us:

You’d keep your higher tax-free lump sum entitlement of more than 25% of your pot if you take it up front and all in one go.
You’d lose your higher tax-free lump sum entitlement of more than 25% of your pot if you take your tax-free lump sum in chunks.

This is a complex subject and we recommend that you discuss your situation with a financial adviser.

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