Small pot lump sum

If you have £10,000 or less in your pension pot, you may be able to cash in the whole lot from age 55 (or age 57 from 2028).

The first 25% of cash you take is tax free. The remaining 75% is taxable, as if it were income, at the highest rate you pay.

  • You can cash in any number of occupational pension pots in this way (like The People’s Pension).
  • You can cash in up to three personal pension pots during your lifetime. EasyBuild and EasyBuild S2P (older pension schemes provided by our parent company B&CE) count as separate pots.
  • Unlike flexible lump sums or flexi-access drawdown, a small pot lump sum won’t reduce your annual allowance (for tax relief on money you save into your pension in the future).
  • HMRC have complex rules on whether you can or can’t take a small pot lump sum:
    • If you’re claiming an EasyBuild or EasyBuild S2P small pot lump sum, you can start this by calling us on 0333 230 1369 or by emailing us at and we’ll send you a claim form. You’ll need to complete and submit the claim form by 31 January 2020.
    • If you’re claiming a small pot lump sum with The People’s Pension, you can start the process over the phone, requesting a printed claim form, or through your Online Account. We’ll then let you know if there’s any reason you can’t go ahead.

More about how you can take your pension savings