Flexible lump sums

These are lump sums you can take to cash in your whole pension pot – or just some of it, leaving the rest invested.

Some people call these ‘flumps’… and HMRC calls them ‘uncrystallised funds pension lump sums’ (or UFPLS). This term is meant to highlight that the lump sum still needs to be taxed… but we’ll stick with ‘flexible lump sum’.

  • 25% of a flexible lump sum comes tax free, with the other 75% taxed at the highest rate you pay.
  • With The People’s Pension, if you have over £10,000 in your pension pot, you may be able to take flexible lump sums. (If your pension pot is £10,000 or less, check out Small pot lump sums.)
  • You’re allowed 1 payment each tax month and it has to be at least £2,000. Then each time you take another one, you need to still have over £10,000 in your pot on the date we process your claim.

There’s also a range of rules and tax concerns you need to think about, so make sure you do your research.

More about how you can take your pension savings »