How much of my pension can I take tax free?
Last reviewed:
In short: Generally 25% of the pot, capped by the Lump Sum Allowance of £268,275 across all your pensions combined.
From age 55 (rising to 57 from 6 April 2028) you can normally take up to 25% of a defined-contribution pension as a tax-free lump sum, known as the Pension Commencement Lump Sum (PCLS).
The Lifetime Allowance was abolished on 6 April 2024 and replaced by the Lump Sum Allowance of £268,275 — the total tax-free cash anyone can take across all their pensions, unless protected. The Lump Sum and Death Benefit Allowance is £1,073,100.
Some people have transitional protection from the old LTA regime that allows higher tax-free cash. If your pension is sizeable or you have pre-2024 protections, take regulated advice before crystallising.
Primary source: gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm176000