Glossary · Pensions

PCLS (Pension Commencement Lump Sum)

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Content updated: 26 May 2026

By the Money Guide editorial team · Editorial responsibility: Kaiser Khan, Editorial Director · How we check facts

Definition: The tax-free lump sum you can usually take when crystallising a defined-contribution pension — generally 25% of the pot, subject to the Lump Sum Allowance.

Available from the normal minimum pension age (currently 55, rising to 57 from April 2028). Capped collectively across all pensions by the £268,275 LSA from 6 April 2024.

Primary source: gov.uk/hmrc-internal-manuals/pensions-tax-manual

More Pensions terms

Annuity
Auto-enrolment
Drawdown (pension)
Lump Sum Allowance (LSA)
MPAA (Money Purchase Annual Allowance)
SIPP (Self-Invested Personal Pension)

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