Answers · UK 2025/26
When can I take my pension lump sum?
From age 55 (rising to 57 in April 2028) you can take up to 25% of your defined-contribution pension as a tax-free lump sum, capped at the £268,275 Lump Sum Allowance. The remaining 75% can be drawn as taxable income, an annuity, or further lump sums.
Full answer
The Normal Minimum Pension Age (NMPA) is 55 in 2025/26 and rises to 57 on 6 April 2028 for everyone except those with a protected lower age. From NMPA you can usually take up to 25% of your defined-contribution pot tax-free — the Pension Commencement Lump Sum (PCLS). After abolition of the Lifetime Allowance in April 2024, the cap is the Lump Sum Allowance of £268,275 (25% of the previous £1,073,100 LTA). The remaining 75% becomes either: flexible drawdown taxed at your marginal Income Tax rate; an annuity; or further uncrystallised funds pension lump sums (UFPLS), each of which is 25% tax-free and 75% taxable. Taking any taxable element triggers the Money Purchase Annual Allowance, restricting future contributions to £10,000/year. Defined-benefit (final salary) schemes have separate rules — typically a tax-free lump sum at retirement plus a reduced annual pension under commutation. Always consider Pension Wise (free guidance) or regulated advice before drawing.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.