Lump sum payment

You’re usually able to take up to 25% of a pension pot as a tax-free cash (limited to a lifetime maximum of £268,275 unless you hold protection for a higher amount).

There are some rules, but often you’re able to take the whole pot as cash, with 25% tax free (up to the lifetime cap).

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 (although each payment must extinguish – fully pay out – your benefits in the Scheme).
  • For personal pension pots though, you’re limited to three – of up to £30,000 across three different pension pots (max £10,000 each).
There are plenty of ways to take money out of your pension pot as a full lump sum or partial lump sums. More about your different options for taking your pension savings »

We’re not authorised to give you advice, but you can read more about your guidance and advice options on our website.