Lump sum payment

You’re usually able to take up to 25% of a pension pot as a tax-free lump sum.

There are some rules, but often you’re able to take the whole lot as cash, with 25% tax free.

You could take your pension savings as what’s known as a small pot lump sum.

  • You can take as many occupational pension pots in this way as you like.
  • For personal pension pots though, you’re limited to three – of up to £30,000 across three different pension pots (max £10,000 each).
Take a look at flexible lump sums, or for getting cash alongside an income, take a look at annuities and flexi-access drawdown.

 

More about how you can take your pension savings »