In normal circumstances, you can take up to 25% of your pension funds as a tax-free cash lump sum.
The official term for this Tax-Free Cash Lump Sum is Pension Commencement Lump Sum (PCLS).
Obviously, if you take part of your pension funds as a lump sum you will have a smaller amount to fund your retirement income.
If you wish, you can access your tax-free lump sum without taking an income. See our page on Capped Drawdown.
There are some limited circumstances where it is possible to take more than 25% of the pension fund value as a tax-free lump sum.
Your pension provider should be able to tell you whether or not you qualify for a higher amount.
How much of a tax-free cash lump sum are you entitled to?