Can I take a lump sum from my pension pot?
Yes – when you begin receiving an income from your defined contribution or personal pension, you can choose to take up to 25% of the entire amount tax-free, with the rest being taxed at your marginal rate of income tax.
Regarding the State Pension, if you began receiving it on or before April 6th 2016, but chose to defer payments for 12 months or more, you may receive the deferred amount in a lump sum, plus 2% interest for each week deferred.
If you're a member of a defined contribution scheme, you can take a 25% tax-free lump sum, but this will reduce the income you will receive from the scheme in the future.
Return to Retirement Planning home.