Lump sum option

You can choose to take up to 25% of your benefits as a tax-free lump sum. (Subject to Tax Allowances)

The lump sum you receive depends on your age at retirement as the amount converted is multiplied by a factor that varies according to age.

If you choose to surrender part of your pension for a lump sum, the pension payable to your dependant/spouse is not affected.

If you have been contributing to a Money Purchase Additional Voluntary Contribution (MPAVC), your MPAVC fund will first be used to provide all or part of your tax-free lump sum before giving up any pension.

If your lump sum is more than the allowance set by HMRC, it will be necessary to cut back the amount you convert to the current allowance, further information can be found on the government website: gov.uk/tax-on-your-private-pension/lifetime-allowance.